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Cryptocurrency trends revealed by Morgan Stanley research division

Friday 2 November 2018 10:27 CET | News

Institutional investors are increasingly getting involved in Bitcoin and other cryptocurrencies, according to a new report by Morgan Stanley.

The report named “Bitcoin Decrypted: A Brief Teach-In and Implications” is dated 31 October, and delves into the last six months of Bitcoin and highlights certain trends it noticed.

Initially, according to the report, Bitcoin was defined as “digital cash” and investors had full confidence in it. Cryptocurrencies were perceived from a solution for issues in the financial system, to a new payment system. Currently it is seen as a new institutional investment class. The amount of crypto assets under management has been increasing since January 2016, with USD 7.11 billion currently being stored by hedge funds, venture capital and private equity companies.

However, the report also cited three issues clients had with investing in the crypto space: regulatory uncertainty, a lack of regulated custodian solutions, and a current lack of large financial institutions in the space.

Regarding stablecoins, or types of cryptocurrencies that seek to enable some form of price stability, the researchers do not see all stablecoins surviving: only those “with the lowest transaction costs, highest liquidity and defined regulatory structure” are likely to see increased adoption.


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Keywords: Morgan Stanley, cryptocurrency, report, digital assets, digital cash, stablecoin
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Countries: World