In the latest Bitcoin news, we have institutional investors and their involvement in Bitcoin and other cryptocurrencies – while the number of retail investors in the space is staying stagnant. This is what a new report made by Morgan Stanley has discovered.
As an update to the “Bitcoin Decrypted: A Brief Teach-In and Implications,” the global banking giant’s division delved into the last six months of Bitcoin, highlighting the trends it noticed, dated on October 31st.
The report also emphasized its “rapidly morphing thesis,” which began by defining Bitcoin as “digital cash” and noting that investors had full confidence in it as a solution to the issues in the financial system – to a new payment system and eventually a new institutional investment class.
There have been various issues and discoveries around the Bitcoin ecosystem that caused this thesis to evolve, one of which was the permanent ledger that records all transactions, a number of hacks, hard forks, market volatility, new technologies that are cheaper than Bitcoin etc.
The group’s thesis focuses on making Bitcoin “a new institutional investment class” in which the amount of crypto assets under management has been increasing since January 2016, with $7.11 billion currently being stored by hedge funds, venture capitalists and private equity firms.
However, the report also cited three issues that clients had with investing in crypto: the regulatory uncertainty, a lack of regulated custodian solutions and a current lack of large financial institutions in the space.
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