Morgan Stanley, one of the world’s largest banks, has published a note recognizing Bitcoin as an investable asset class. The Wall Street investment bank believes that the crypto is reaching a threshold, recommending it to play a role in a diversified investment portfolio.
In a note published Wednesday, the bank’s wealth management unit, which has $4 trillion under management, noted that any investment in Bitcoin is a speculative one. However, if investors educate themselves on the risks involved and proceed cautiously, Bitcoin could give them great diversification benefits.
Lisa Shalett and Denny Galindo, the authors of the note, stated, “For speculative investment opportunities to rise to the level of an investable asset class that can play a role in diversified investment portfolios requires transformational progress on both the supply and demand sides. With cryptocurrency, we think that threshold is being reached.”
The bank acknowledged the recent entry into crypto by institutional investors as a key factor behind their faith in Bitcoin. In addition, regulators are stepping up their game with cryptos. This, coupled with deepening liquidity and a rising number of crypto products makes the area worth watching for investors.
BREAKING: Morgan Stanley, the largest US brokerage, is embracing Bitcoin.They have released a report “The Case for Cryptocurrency as an investable asset class in a diversified portfolio.”Bitcoin is inevitable.— Pomp (@APompliano) March 17, 2021The bank recommends that investors must study cryptos before diving into the industry. Bitcoin is still in its speculative phase and as such, it faces …
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