Morgan Stanley: Bitcoin (BTC) Is a New Institutional Investment Class
Morgan Stanley (MS) has been one of the more forward-thinking Wall Street institutions when it comes to cryptocurrency, and their recent report on Bitcoin (BTC) shows a new level of trust in the digital asset.
In the report, Morgan Stanley cites institutional investor’s increasing assets under management (AUM), surging Bitcoin futures trading volume, and the relative stability of price as indicators that Bitcoin is beginning to mature as an asset class.
Morgan Stanely also shares insights from discussions with institutions regarding the current limitations in the digital currency space that is delaying mass adoption. These include underdeveloped regulatory frameworks, lack of custodian solutions and the low numbers of large financial institutions and asset managers currently invested.
This report came the same week that other major investment banks made headlines regarding their cryptocurrency activities. JPMorgan’s (JPM) New York-based head of blockchain initiatives, Umar Farooq, revealed this week that the bank is a big believer in Ethereum (ETH) and that clients are starting to tokenize physical gold bars onto JPMorgan’s Quorum blockchain to allow companies to capitalize on sustainable mining methods to earn a premium on global markets.
Separate reports revealed that Goldman Sachs (GS) is now onboarding clients to adopt its new Bitcoin derivative product. Interestingly, Morgan Stanley’s report revealed that Goldman has already cleared trades, sometimes with up to 100% margin, and is also exploring the potential for market-making.
Morgan Stanely is currently gearing up to offer Bitcoin swap trading to clients, enabling investors to gain exposure to the world’s largest digital currency without needing to own it.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.