Morgan Stanley Calls Bitcoin (BTC) And Cryptocurrencies A New Type Of Institutional Asset Class

by | Nov 2, 2018 | Cryptocurrency, Cryptocurrency News

Morgan Stanley | Cryptocurrency | Bitcoin | Institutional Asset Class

Global investment bank Morgan Stanley released a new 50-page report that updates their status on Bitcoin (BTC), Cryptocurrencies and Blockchain. An update on the first version published by the research division of the firm, titled ‘Bitcoin Decrypted: A Brief Teach-in and Implications’ in December, which has received a total of 15 such updates as the firm continually researched cryptocurrencies and blockchain.

According to The Block, the institutional investor states in the report that Bitcoin has become an institutional investment class. What this means that the digital assets are types of asset similar to shares, bonds, property, commodities, or cash.  Not anymore a store of value BTC now also serves as a trading instrument that caters the needs of big banks and family offices across the globe. It is thus that there has been a rise in demand of cryptocurrency by the institutional clients and the rule book of institutional firms says that one should adhere to the demands of their clientele.

Morgan Stanley might jump onto the cryptocurrency wagon

According to the Abacus Journal, while Morgan Stanley might not be interested in offering custody services due to the expense it pertains, they seem to incline  towards offering and/or utilizing the following:

  1. A trading desk of the institutional level that will offer products like futures contracts, OTC transactions, NDF. The clients could trade across other Level 1 institution such as Goldman Sachs and Citi
  2. In order to offer Bitcoin futures transactions, Morgan Stanley could utilize Bakkt’s infrastructure or using every resource that exists by 2019 including ErisX, CME, and CBOE

Whether the firm enters the market or not, such researches will increase the confidence of Institutional institutions to convert their slight incline into a full-fledged investment idea or product.

Read more: “Buy One Bitcoin, Get Two For Free”, Says CEO Of Pantera Capital

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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