According to Morgan Stanley’s reports, cryptocurrencies were newly labeled as an institutional investment class after its research division found trends that showed that institutional investors are increasingly investing in cryptocurrencies.
The report, titled “Bitcoin Decrypted: A Brief Teach-In and Implications”, updated the classification of digital assets based on statistics from the last six months.
The arrival of institutional money has been highly anticipated in the cryptocurrency community, but recent reports have indicated that the money has already been slowly trickling in.
Various issues and discoveries around the bitcoin ecosystem have caused the thesis to evolve, including the permanent ledger recording all transactions, a number of hacks, hard forks, new technologies which are cheaper than bitcoin, market volatility and other concerns, the report explains.
As such, the market’s current thesis appears to be that bitcoin is a “new institutional investment class,” and has been for almost a year.
Additionally, the researchers at Morgan Stanley think the payment system implemented by the Bitcoin protocol will be adopted by financial institutions. The report also mentioned that cryptocurrency platforms could help overcome the current issues in the traditional financial system.