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HomeCryptoCurrencyMorgan Stanley calls on institutions to join the Bitcoin market

Morgan Stanley calls on institutions to join the Bitcoin market

The multinational finance company Morgan Stanley said in a statement that the institutionalization of bitcoin and cryptocurrencies in general “creates a great opportunity for asset and wealth managers.” In addition, he expressed that institutional investors will be more and more and that it will be necessary to satisfy that demand in a market whose capitalization continues to grow.

In the letter, which was not published by the entity but that announced the Twitter user @zerohedge in a post on this social network, the company explains that the market capitalization of cryptocurrencies exceeded 2 trillion dollars in April 2021, “as institutional investors (…) added a tailwind for increasingly strong retail and family investments.”

As a result, Morgan Stanley calls on asset managers wishing to participate in the cryptocurrency sector to “consider a range of products as an answer, from including crypto assets as part of an existing multi-asset fund to have passive or active products dedicated to cryptocurrencies, in order to offer a solution it is structured ”. “The largest wealth managers must decide how to participate, while the smallest players can decide if they want to enter this market,” says the statement.

On the other hand, the text titled Cryptocurrencies: time to decide and act refers to the obstacles that bitcoin has yet to overcome. Regarding these “barriers” that still exist for a greater institutional adoption of cryptocurrencies, MS detailed that “the uncertainty regarding regulation, the high volatility that persists and the sustainability problems” are the most important.

Still, Morgan Stanley makes it clear that a growing number of investors are going to be interested in cryptocurrencies, « and wealth managers must develop a supply to meet this demand. ”

forecasts by the US firm, one of the most recognized in the field of investment agencies and brokerage firms, predict that “cryptocurrencies could generate close to 200,000 million dollars of total locked value (AUM) and approximately 1,000 million in earning opportunities from ETFs. ”

“ This represents a non-trivial opportunity in co compared with the almost 12,000 million dollars of profits that ETFs of other types of assets had in 2020, “adds the text.

According to the Morgan Stanley analysis, this inclusion of these Digital assets by institutions has become “significantly easier” thanks to the creation of new tools in this regard, such as those that allow the execution of trade operations and the administration of custodians and funds. However, they still need to think about “operational issues, such as digital security and infrastructure strategy.”

Morgan Stanley and its actions to adopt bitcoin

The positive consideration of this American entity towards bitcoin goes far beyond mere words. First of all, as CriptoNoticias reported, was the first traditional bank to offer direct purchase of bitcoin to its most qualified customers. In addition, the announcement made In March, it also indicated that the bank’s employees would be trained in cryptocurrencies.

Likewise, MS also initiated proceedings with the United States Securities and Exchange Commission (SEC, for its acronym in English) so that 12 of your funds are indirectly exposed to bitcoin. According to the April 2021 announcement, this exposure was expected to come from two methods: futures settled in cash and through the Grayscale Bitcoin Trust (GBTC).

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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