Bitcoin, Crypto currency, Blockchain

“New institutional asset class”: Bitcoin Report by Morgan Stanley

Bitcoin is after ten years old? The analysts of the investment firm in an Update to its Report “Bitcoin Decrypted! A brief Teach-in and Implications of“ the Primus of the crypto-currencies redefined.

The investment giant Morgan Stanley (MS) sees Bitcoin in a new Stadium. He had made a change to the institutional asset class. According to a report on the 31. Is dated October. It is an Update of the MS in December of 2017, created the introduction of “Bitcoin Decrypted! A brief Teach-in and Implications“

Main thesis: Bitcoin by rapid metamorphosis is alive””

The Report traces the various theories, the specific views of the company on Bitcoin to date, and if available, also the respective reactions of the crypto-market. This Evolution of the theses is under the basic assumption of a “rapid metamorphosis” of Bitcoin.

So far crypto-currencies have different phases, which differ mainly in the nature of their use. These phases may overlap.

BTC as an anonymous, but reliable money

Between 2008 and 2016, the assumption that Bitcoin would guarantee full anonymity-dominated. Only then is the realization that an immutable and publicly visible transaction is book in fundamental opposition spread.

The response of the crypto-market followed with Privacy Coins like Monero and Zcash.

Bitcoin as a replacement for Gold

Also the Credo of BTC as a Gold Alternative reflects a still widespread viewing of the crypto-currency. This use as a store of value and medium gains since 2017 is becoming increasingly important.

Bitcoin as an alternative payment system

Here it is still bad to Bitcoin. Of the 500 largest U.S. e-Commerce providers in all four accept him.

Crypto currencies as a Fundraising Alternative

The situation is different in the area of the ICOs. Here 2018 11,01 billion in the U.S. collected $ 3.86 billion more than in 2017. In 2018, the fins according to MS 1.62 billion US dollars in defective Coins.

Bitcoin as an institutional investment class

Since 2017 Morgan Stanley observed a growing interest from large institutional investors. According to estimates, the sum of the crypto-Assets managed (AUM) is $ 7.1 billion, compared with the total market capitalization, which is not much. In each case, 48 per cent to fall on hedge funds and venture capital firms and three percent over-the-counter equity.

Institutional: Interested, but cautious

The Report also specifies a number of examples to demonstrate the growing interest of the institutional side. The list is led by investment giant Fidelity, with plans for a crypto-Trrading-Desk for attention.

Also the Fundraising for the crypto-exchange, Coinbase is in the list. Coinbase has recently collected $ 500 million in investment and estimates himself to be around 8 billion US dollars.

Furthermore, the Review of the market square of the Gemini stock exchange by NASDAQ, was another indication of the increasing Connections between the crypto Space and the traditional market.

Open-Ended Questions

From the customer’s point of view, there is, according to the Report, so far, three main obstacles that institutional investors, by entry into the crypto market scare:

  1. The unclear regulatory situation and the resulting risk for your Reputation deters many Asset managers.
  2. lack of facilities for the storage of crypto-currencies and the private Keys
  3. A lack of large financial institutions and Asset managers who are currently invested in the market – a somewhat circular Argument.

The BTC-rate is similar to according to the report, the performance of the NASDAQ in 2000. Last was able to say goodbye to the end of the year of the bear market. The question was now, whether Bitcoin succeeds.

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