Bitcoin has penetrated institutional segment, Morgan Stanely says

Lloyd Doyle
November 7, 2018

Despite the persisting bear market this year and the accompanying price drop, Morgan Stanley continues, Bitcoin and altcoins have constituted a "new institutional investment class" since 2017.

According to a new report first released on October 31 by the USA multinational investment bank and financial services company Morgan Stanley, it stated that Bitcoin (BTC) and altcoins are considered a "new institutional investment class" since the year 2017.

The most common type of institutional investor that manages cryptocurrency assets are hedge funds (48%), together with venture capital (48%) and private equity (3%).

Morgan Stanley report started by specifically emphasizing on the "rapidly morphing thesis". However, Morgan Stanley says that even though the institutional investment is on a rise, the retail participation is stagnant. Furthermore, the thesis noted how Bitcoin has emerged as an answer to the issues within the traditional financial system.

There is evidence that leading financial institutions are now boldly involving themselves in Bitcoin, giving further credibility to the report. The report cited Fidelity Investments' recently established digital assets division (for crypto custody and brokerage solutions) as a major development that legitimizes the crypto industry. The thesis noted Bitcoin as "digital cash" and said that investors had full confidence in the cryptocurrency.

USDT took an increasing share of BTC trading volumes as cryptocurrency prices started falling.


Many media giants have described this document as one of the strongest signals yet to indicate Wall Street's indulgence with cryptos and BTC in particular also appreciating it for its positive nature.

Crypto startups are quickly joining the trend while cryptocurrency exchanges and crypto companies are developing their own Stablecoins so they can become part of the new wave of development. The report is dated October 31.

The evolution was driven by the events happening in the system and by discoveries regarding Bitcoin ecosystem functionality and applicability.: hack attacks, forks, transaction traceability, new technologies based on Bitcoin, market volatility and vulnerabilities - all of these shaped the idea of Bitcoin.

As such, the group's current thesis is that bitcoin is a "new institutional investment class", and has been for nearly a year.

The report also revealed that total crypto assets under management (AUM) has been steadily increasing. At the same time, the researchers three issues clients had with investing in the cryptocurrency space: regulatory uncertainty, a lack of regulated custodian solutions and a current lack of large financial institutions in the space.

Other reports by Iphone Fresh

Discuss This Article

FOLLOW OUR NEWSPAPER