For the financial institution, banks will have to satisfy the increasing demand of investors. According to the financial institution, cryptocurrencies have yet to overcome doubts about regulation and volatility.
The multinational finance company, Morgan Stanley released a recent statement highlighting the advantages of the institutionalization of bitcoin and cryptocurrencies. The finance company said it would generate opportunities for asset and wealth managers.
In addition, Morgan Stanley expressed that institutional investors will also increase in numbers and that it will be necessary to satisfy that demand in a market whose capitalization continues to grow.
In the letter, which did not come from the entity but the Twitter user @zerohedge, which posted it on this social network, the company explains that the market capitalization of cryptocurrencies has already surpassed 2 billion dollars in April of 2021.
Because of this increase, Morgan Stanley requests asset managers wishing to take action in the cryptocurrency sector to consider a set of products as an answer. It would mean including crypto assets as part of an existing multi-asset fund to having passive or active products dedicated to cryptocurrency, to offer structured solutions.
On the other hand, the text entitled Cryptocurrencies: “time to decide and act refers to the obstacles that bitcoin still has to overcome. Regarding these constant barriers that still exist for greater institutional adoption of cryptocurrencies, MS detailed that the uncertainty regarding regulation, the high volatility, and the sustainability struggles are the most vital aspects, and they need a solution.
However, Morgan Stanley clarifies that an increasing number of investors will be interested in cryptocurrencies, and wealth managers will need to develop a supply to meet this demand.
The forecasts of the US firm, one of the most recognized in the field of investment agencies and brokerage firms, predict that cryptocurrencies could amass almost 200,000 million dollars of total locked value (AUM) and approximately 1,000 million on earning opportunities from ETFs (Exchange Traded Funds).
The text also adds that these figures represent a non-trivial opportunity compared to the almost $ 12 billion in gains that ETFs of other types of assets had in 2020.
Morgan Stanley and its Actions to Set a Bitcoin Adoption
The vision of this American entity towards bitcoin goes far beyond mere words and turns into action. It was the first traditional bank to offer direct purchase of bitcoin to its most qualified customers. Also, the recent announcement made in March shows that the employees would receive proper training in cryptocurrency.
Likewise, MS also initiated proceedings in the United States Securities and Exchange Commission, so that 12 of its funds meet indirect exposure to bitcoin. According to the April 2021 announcement, this exposure would come from two methods. One method is about futures settled in cash and through the Grayscale Bitcoin Trust (GBTC).
By: Jenson Nuñez
