In a recent note, Morgan Stanley’s wealth management unit referred to cryptocurrency as an emerging investable asset class. According to the authors of the note, Lisa Shalett, and Denny Galindo, their conclusion on crypto is a cautious one, as they believe any investment in Bitcoin is a speculative one. The authors also talked about the shift to cryptocurrency from absolute rejection to widespread adoption.
Citing the author’s note, The Block said in a report:
“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 the threshold is being reached. A firming regulatory framework, deepening liquidity, availability of products and growing investor interest- especially among institutional investors- have coalesced.”
Speaking further, the authors recommended that adequate information should be made available for new investors. The authors stressed that investors need to be educated to guide them in making crypto investment decisions.
Conclusively, the author did not recommend outright direct exposure in investing in any digital asset as they are “yet to be convinced.” They further advised clients to take caution regarding their investment decisions.
Additionally, Morgan Stanley said during its executive summary that any asset class in its speculative phase is prone to predictable, identified, and uncovered risks.
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