Morgan Stanley Report Shows Strong Institutional Investment for Bitcoin

On October 31, multinational investment bank and financial services company, Morgan Stanley, released their latest report on Bitcoin.

The report contains an overview of both how Bitcoin has evolved, and how its investment purpose has changed throughout its existence.

As previously reported by Cointelegraph, Morgan Stanley told clients that Bitcoin was similar to the Nasdaq, albeit moving "15x" faster.

The report then explains that the resulting slide in Bitcoin prices also had a knock-on effect across the sector, meaning that owners seeking to extricate themselves from Bitcoin holdings needed to find an asset whose valuation more closely reflected the valuation of the U.S. dollar.

Another key aspect of the Morgan Stanley report is what it calls crypto's "Rapidly morphing thesis." The report traces the evolution of Bitcoin from its varying roles of digital cash, a new fundraising mechanism, a method for the store of value, to its most recent incarnation as a "New institutional investment class."

Regulators quoted in the report remain wary but crypto sees an increase in positive commentsAnother section of the report is dedicated to comments from regulators.

The Morgan Stanley report documents that regulators are still skittish about how best to classify cryptocurrencies, as well as how to fit them into an appropriate framework in which they can be traded safely and legally.

The last report released by Morgan Stanley to focus on Bitcoin was released in January 2018.

The November 2018 report is the first to document a change in institutional investment patterns and to document the trend for crypto-tied futures.

The bullish outlook of the report could well be indicative of wider readiness for big institutional players to more readily adopt Bitcoin in the 2019 financial year.