If Morgan Stanley embraces Bitcoin in any form, it would likely pave the way towards the beginning of ubiquitous and universal acceptance of cryptocurrency by institutional investors.
Bloomberg reports that Morgan Stanley will offer trading in complex derivatives tied to Bitcoin, giving investors synthetic exposure to the cryptocurrency. While the news is anonymous, the news purportedly comes from within the multinational investment bank and financial services company itself. The anonymous source added,
“Investors will be able to go long or short using the so-called price return swaps, and Morgan Stanley will charge a spread for each transaction.”
The investors will not have direct access to Bitcoin, only the ability to buy and sell derivatives based on swaps are tied to Bitcoin futures contracts. Goldman Sachs and Citigroup are to follow and are in pursuit.
Only time will tell whether the combined mass and influence of Morgan, Goldman, and Citi will have enough momentum to transition Bitcoin from Bearcoin to Bullcoin. There’s no doubt that this is either an auspicious or terrible moment in the development of Bitcoin and all the little altcoins that are currently all too dependent on the health and strength of Bitcoin.Leave a comment