Morgan Stanley

Crypto Emerges As Investable Asset Class, Says Morgan Stanley

Morgan Stanley

Morgan Stanley’s wealth management unit issued a research report outlining a case for cryptocurrency as  an emerging investable asset class.

Morgan Stanley sees signs of maturation of the cryptocurrency asset, especially given its resiliency since the height of the pandemic. 

In the report, it stated that the “threshold is being reached” for cryptocurrency to become an investable asset class.

In the report, Morgan Stanley also published a simulation of adding a 2.5% allocation to Bitcoin (BTC) in a traditional portfolio consisting of 60% equities and 40% bonds, with monthly rebalancing. 

Results showed improved annualized returns by 164 basis points in five of the past seven years, without significantly increasing volatility.

The report comes after the Wall Street banking giant is launching access to three funds that enable Bitcoin (BTC) ownership.

It is allowing certain high-end clients access to three Bitcoin funds: two from Mike Novogratz’s Galaxy Digital, and a third that’s a joint effort from NYDIG and FS Investments.


Grayscale Adds Chainlink, Filcoin

At the end of last year, Morgan Stanley bought a 10% stake in MicroStrategy, which holds over $5 billion in Bitcoin. It also joined a $200 million investment in Bitcoin firm NYDIG earlier this month.

On a side note, Grayscale, the largest digital asset investment firm, recently added five new investment trusts for its clients.

The new products are Basic Attention Token (BAT), Chainlink (LINK), Decentraland (MANA), Filecoin (FIL) and Livepeer (LPT). This makes a total of 13 crypto-investment trusts held by the firm. 

Grayscale is the largest crypto asset manager in the world and manages over $42.9 billion worth of assets.  CEO Michael Sonenshein said the firm plans to extend its roster to as much as 40 products for investors. This adds a wide range of assets for investors seeking potential tokens in the market.