Morgan Stanley Sees a Future with Cryptocurrency

Author: 
Michael R.
Date: 
November 03, 2018
Read time: 
2 minutes
Investing
Bitcoin
Cryptocurrencies

According to a new Morgan Stanley report titled, “Bitcoin Decrypted: A Brief Teach-in and Implications,” cryptocurrencies are being taken seriously as a new institutional investment class. Explained more simply, institutional investment firms, such as hedge funds, are allocating more focus towards trading crypto assets.

According to a new Morgan Stanley report titled, “Bitcoin Decrypted: A Brief Teach-in and Implications,” cryptocurrencies are being taken seriously as a new institutional investment class. Explained more simply, institutional investment firms, such as hedge funds, are allocating more focus towards trading crypto assets.

Morgan Stanley’s data shows that there are over 100 dedicated cryptocurrency funds with a combined AUM (assets under management) of over $2bn at the start of 2018. This figure is expected to grow once 2018 statistics are reviewed. 2017 had 84 new funds launch as compared to 11 in 2016 and 4 in 2015.

Morgan Stanley report about cryptocurrency

They also indicate that Bitcoin’s volatility is decreasing year after year. This makes investors feel more comfortable investing. Daily price swings in Bitcoin seems to average around 4-6% in 2017 which is much more acceptable compared to figures as high as 14%, 15%, and 16% back in 2011.

Overall, the report was very fair, evaluating both the downsides and upsides to decentralized technology. Despite any criticisms, they have an optimistic view of its future and expects the industry to grow substantially.

Additionally, as the Bitcoin futures market grows and if major exchange such as NASDAQ list Bitcoin and other cryptocurrencies for trading, then there is little doubt that the industry will continue to boom more than we have ever seen.

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