Morgan Stanley offers Bitcoin access
Morgan Stanley (MS) is the first big U.S. bank to offer its clients access to Bitcoin funds, putting it back on track to achieving its sixth consecutive month of positivity and lifting prices by 3.54%.
The investment bank giant officially told its wealth managers to deliver access to Bitcoin funds, albeit limited to its wealthier clients and restricted to 2.5% of their total net worth.
Still, this is a big move towards increased institutional money pumping into digital assets and could contribute towards the wider acceptance of Bitcoin as an investment-grade asset class.
In a note, it said that it believed that Bitcoin was here to stay, but so was the volatility.
It would be kinda dumb to ignore a $1 trillion market cap, for sure, but low liquidity remains a big obstacle to bitcoin evolving into its own asset class from valuations alone.
Not everyone is feeling quite so cheery about cryptocurrency, either.
The bank also raised concerns over the asset’s vulnerability to sharp price swings because of its high ownership concentration, with 95% of Bitcoin owned by only 2.4% of accounts.