A recent crypto report from analysts at Morgan Stanley states that BTC has been viewed as an asset for institutional investment for almost a year now. According to the bank, "stablecoins" have earned their popularity because of investors who are looking for a new asset that is closer to the dollar.
The contribution of institutional investors to cryptocurrencies is gaining momentum, while the number of individual investors is stagnant. This is all reported in a recent report from Morgan Stanley.
One of the leading changes can be singled out: the father of cryptocurrencies (BTC), which is considered as a digital cash that large investors did not believe in, then became a solution for financial systems, after a new system, and now BTC is already considered as an asset for institutional investment. The factors of its use were influenced by many problems and discoveries, this is all told in a document from Morgan Stanley. Among these factors, there are also hacker attacks, innovative technologies, market volatility and some other issues.
The Morgan Stanley research team believes that in the last 12 months, BTC can be awarded the title of “a new class of institutional investment”. The number of digital assets under management has only been growing since the end of 2016 and even today, hedge funds, VC funds and private companies hold more than $7 billion worth of crypto assets.
For example, the fact that large companies consider BTC as an asset for institutional investment, researchers cite the creation of platforms for working with digital assets in Fidelity, investments in the trading platform for institutional investors Seed CX, investments in the BitGo multisig wallet and the Binance exchange, regulatory approvals and a recent round to raise funds from the Coinbase exchange.
Experts also identified three problems that Morgan Stanley clients faced when investing in digital assets: uncertain regulation by states, a limited number of custodial solutions, as well as a small number of large financial institutions in this area.
In addition to all of the above, the researchers considered the situation with Tether. They came to the conclusion that this only exists because more cryptocurrency trading platforms do not deal with fiat. This happens because the commission for converting into fiat currency is more expensive than the exchange of the tokens themselves. In addition, investors wanted to get out of investments due to the fall in price, quit investing in BTC and invest in something closer to the dollar.
From now on, this trend is now based on trading floors and in other companies that are busy developing their stablecoins. In this, coins with the lowest transaction fees, highest liquidity and legal basis will survive.
Morgan Creek Capital Management (MCCM), which is originally from the United States, in its recent quarterly report hinted that sooner or later it will happen that crypto assets will replace fiat, and interest in this type of asset will only grow.
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