BTC an institutional asset class, not a store of value
The new report reveals that the classification of bitcoin as a “new institutional investment class” has been in existence since 2017 and that cryptocurrency assets under management have been increasing since the beginning of 2016.
There is a reported $7.11 billion being stored at the moment, of which 48% are in hedge funds, another 48% are in venture capital, and 3% are in private equity.
The total number of crypto funds has risen from 31 in 2014, to an estimated 220 this year.
The report also claims that the seven hard forks that bitcoin has seen to date are “like stock splits or new class creations,” however the report also concludes that “unlike a stock split, the fork is not lowering the price per bitcoin.”
The hard forks in question refer to Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, UnitedBitcoin, Bitcoin X, Super Bitcoin, and Bitcoin Private.
The report claims that the Wall Street Journal indicated over 270 initial coin offerings (ICOs), which had raised in excess of $1 billion and were responsible for $273 million worth of losses for investors, had plagiarised investment documents and missing or fake executive teams.
The response has seen the likes of Coinbase, as well as others, “assume bank type responsibilities.”
The end game for Morgan Stanley
The truth is, anyone who believes in the original aim of cryptocurrency should be concerned at this report, although how surprised they should be is questionable.