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The collapse of FTX sent shockwaves through the cryptocurrency industry. The price of Bitcoin and other major digital coins has plummeted due to the FTX issues.

Jakub Porzycki |: Nurfoto |: Getty Images:

According to an investment analyst at AJ Bell, there are “no signs of spillover” from cryptocurrency to more traditional assets.

Billions of dollars were lost when the FTX exchange collapsed, raising questions about whether movements in the crypto sector could ricochet into other financial systems.

“Crypto has a lot of money, but it’s kind of built as a separate ecosystem,” Leith Khalaf, head of investment analysis, told Squawk Box Europe on Wednesday.

But that doesn’t necessarily mean there can’t be some overlap in the future.

“If we had a systemic problem, you could see it affect other assets,” Khalaf said, “but I don’t really see that,” he added.

In two separate lawsuits, FTX’s lawyers said in November that it likely has more than 1 million creditors and owes $3.1 billion to its 50 unsecured creditors.

On Tuesday, the exchange’s founder and former CEO, Sam Bankman-Fried, was charged with defrauding investors after his arrest on Monday.

A “highly volatile” asset

Khalaf did not want to make predictions about where cryptocurrency will go because it is so volatile as an asset.

“We can be sitting here talking this time next year and [Bitcoin] could be $5,000 or $50,000. It just wouldn’t surprise me because the market is so heavily driven by sentiment,” Khalaf said.

And while there are questions about the long-term adoption of cryptocurrency, Khalaf made one point very certain.

“For visibility. [cryptocurrency] remains highly unstable and speculatively active,” he said.

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