March 28, 2024

Morgan Stanley recognizes cryptocurrency as an investment asset class

Morgan Stanley recognizes cryptocurrency as an investment asset class

The financial conglomerate Morgan Stanley, which owns the largest brokerage business in the world, has officially recognized cryptocurrency as a new class of investment assets.

The bank distributed a note to clients,which states that digital currencies such as Bitcoin have sufficient liquidity, as well as levels of supply and demand, to qualify them as instruments that can be used to diversify investment portfolios. The authors of the document talk about strengthening the regulatory framework for cryptocurrencies, growing interestto the market and the availability of products.

Morgan Stanley notes that capital investments inDigital assets are still speculative in nature, but can provide benefits due to their weak correlation with traditional instruments. At the same time, the bank recommends approaching the purchase of cryptocurrency as a venture investment, due to the complexity of market forecasting and the uncertainty of pricing.

To conclude the note, the authors advise investors to start with publicly traded multi-asset instruments related to the crypto industry or the blockchain ecosystem.

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