Morgan Stanley report says Bitcoin is new institutional asset class

posted 8 months ago
Institutional investors are increasingly getting involved in Bitcoin and other cryptocurrencies – while the number of retail investors in the space is staying stagnant – according to a new report "Bitcoin Decrypted: A Brief Teach-In and Implications" by Morgan Stanley. The report emphasized its "rapidly morphing thesis," which began by defining Bitcoin as "digital cash" and noting that investors had full confidence in it, to a solution for issues in the financial system, to a new payment system to ultimately a new institutional investment class.

Bitcoin is a "new institutional investment class," and has been for almost a year, the report stated. The amount of crypto assets under management has been increasing since January 2016, with $7.11 billion currently being stored by hedge funds, venture capital firms and private equity firms. That being said, the report did cite 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.
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