Morgan Stanley is a multinational investment Bank that provides different types of financial services. On the 31st of October, the bank released a report on Bitcoin. The report was titled “Update: Bitcoin, Blockchain and Cryptocurrencies “. According to the report, institutional investors have started to develop interest in Bitcoin and altcoins. Comparing this report to last year’s report, the company was bullish about cryptocurrencies. On the report, there is an overview of how Bitcoin has evolved and how the investment purpose of the cryptocurrency has been changed with time.
Bitcoin (BTC) Price Today – BTC / USD
The researchers talked about the recent trend of stablecoins that have been popping up and the reaction of regulators and central banks to Bitcoin in recent time. Things like the high energy consumption levels and the lack of a regulatory framework were cited in the report. There has been an increasing trend of cryptocurrency-related futures and a flow of cash into the industry on an institutional level.
About Cryptocurrency Futures
Futures are contracts for purchasing an asset at a later date and price. The party selling the asset must also agree to sell at this particular date and price. The contracts keeps tags of the quantity and quality of the said assets. It also takes note of other details like method of delivery.
Morgan Stanley has been offering Bitcoin derivatives for a while now. While the bank doesn’t trade cryptocurrencies directly, it offers Bitcoin swap trading that is tied to futures contracts. The CEO of Morgan Stanley, James Gorman, said that the bank may consider offering derivatives that are tied to digital assets through a specializing desk.
The reports from Bloomberg show that the bank has already made plans to offer Bitcoin swap trading but the initiative will not be launched yet until the number of institutional clients who are interested in Futures increases. The bank told clients that Bitcoin is just like Nasdaq with 15 times more speed. The bank appears eager to enter into the industry and believes that financial institutions will eventually lean on cryptocurrencies. However, the number of institutional investors that are willing to dive into Bitcoin futures has remained the same since 2017 and this is rather discouraging.
Stablecoins Report From Morgan Stanley
The report mentioned stablecoins pointing out that they are gradually becoming prominent in the cryptocurrency industry. These dollar backed coins came into existence with the creation of Tether (USDT) in 2017. Since then, many others have launched their versions of stablecoins. These coins are meant to keep price volatility as low as possible. The report takes note of how stablecoins have become so popular that their daily trading volumes are second only to Bitcoin’s.
Other coins that have become popular other than USDT are Gemini Dollar, and TrueUSD. USDT is still the dominant player in the market but recent happenings show that it might lose its grip on investors soon if care isn’t taken.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is currently trading in green at $6,522.16. This shows that it is 1.52% higher against the USD. The 24 hour trading volume is $4,988,900,534 and the market capitalization is $113,248,816,265. The largest cryptocurrency per market capitalization currently has a circulating supply of 17,363,700 and a maximum supply of 21,000,000.