By CCN Markets: Morgan Stanley economist Ellen Zentner told clients today that June may be a rough month in the economy, going so far as to suggest “June Gloom” is looming. This comes on top of a similar warning two weeks ago from the very same Wall Street firm. The latest research note reportedly states: “The decline shows a sharp deterioration in sentiment this month that was broad-based across sectors.” Zentner is often solid on many things. On the most recent note, however, she’s off base. Morgan Stanley is relying on its proprietary Business Conditions Index (BCI), which reflects pivotal moments
By CCN.com: Patrick Springer spent 20 years working for Morgan Stanley as an investment specialist. Specifically, his job was to help institutional investors make informed decisions in global equity markets. Now, despite the bitcoin market meltdown, he’s flung himself headlong into crypto becoming an advisor for Polybird Exchange. Why? Because “it’s important for people to challenge
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By CCN.com: Morgan Stanley CEO James Gorman has expressed fears that the partial U.S. government shutdown could hurt the economy greatly if it drags on. Gorman was speaking in Davos, Switzerland at the World Economic Forum as the shutdown enters its 34th day. In an interview with the CNBC (video below), Gorman empathized with the 800,000
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There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new institutional investment class since 2017, according to new research from major US bank Morgan Stanley. In
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Morgan Stanley (MS) has been one of the more forward-thinking Wall Street institutions when it comes to cryptocurrency, and their recent report on Bitcoin (BTC) shows a new level of trust in the digital asset. In the report, Morgan Stanley cites institutional investor’s increasing assets under management (AUM), surging Bitcoin futures trading volume, and the relative […]
Note: This is part 1 in a multi-part series exploring the dangers of rehypothecation and commingling in bitcoin and other cryptocurrency assets that could occur once Wall Street begins offering crypto products. Part 1 is an interview with Caitlin Long and subsequent parts will ask the question, “How did we get to a place that
The post Interview: Fmr. Morgan Stanley Exec. Caitlin Long on How Wall Street Wants to Ruin Bitcoin [Part 1] appeared first on CCN
Morgan Stanley is joining Wall Street’s race toward an institutional-friendly bitcoin derivative.
According to anonymous sources reporting to Bloomberg, the financial institution is devising price return swaps tied to bitcoin. These derivatives would allow investors to indirectly invest in the market’s flagship currency, allotting them the option to buy into long or short positions through the contracts.
Taking their prices from bitcoin futures, the swaps will not handle bitcoin directly. Seeing as Morgan Stanley is a regulated and established financial institution, tying the product to futures contracts is a safer bet than basing them on bitcoin’s spot price, as the Chicago Mercantile Exchange and Chicago Board of Exchange offer fully-regulated bitcoin futures from which Morgan Stanley can pool pricing data.
Morgan Stanley has become the latest Wall Street firm to venture into Bitcoin trading, with reports emerging that the investment bank intends to offer its clients derivatives tied to the crypto. Citing a source with knowledge on the matter, Bloomberg reported today, September 13 that the bank has already set up the infrastructure required for the trading and only awaits confirmation of sufficient institutional demand. Morgan Stanley follows the footsteps of other Wall Street giants such as Citigroup and Goldman Sachs which have continued to warm up to cryptos and have made strategic steps to be at the forefront of the quickly evolving industry.
Multinational investment bank Morgan Stanley (MS) is preparing to offer Bitcoin (BTC) swap trading to clients, enabling investors to gain exposure to the world’s largest digital currency without needing to own it. According to sources familiar with the matter, participating traders may choose to go either long or short through the new price return swaps. […]
The global investment bank based in the United States, Morgan Stanley is looking to offer Bitcoin swap trading for its clients according to sources.
According to Alistair Marsh, a reporter from Bloomberg, people who are familiar to the matter have said that the giant company “plans to offer trading in complex derivatives” linked to Bitcoin.
According Alistair’s sources, the global investment bank “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin,” and essentially copying plans from Wall Street’s Goldman Sachs and Intercontinental Exchange with others.
US multinational investment bank Morgan Stanley is preparing to offer Bitcoin swap trading for its clients, unconfirmed sources report on September 13.
Sources Say Morgan Stanley Preparing Swap Trades
Citing “people familiar with the matter” in an article from Bloomberg reporter Alistair Marsh, Business Insider’s Frank Chaparro revealed the giant “plans to offer trading in complex derivatives” linked to Bitcoin 00.
According to Marsh’s sources, Morgan Stanley “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin,” thus copying extant plans from Wall Street’s Goldman Sachs and Intercontinental Exchange among others.
When it comes to talk of “The Bitcoin Bubble,” the FUD never stops — especially when it comes from traditional financial institutions like Morgan Stanley.
They Look the Same (But Not Really)
According to Sheena Shah, a strategist at Morgan Stanley, there are similarities between Bitcoin and the Nasdaq during the 1998-2000 technology bubble — with his argument centering around the fact that both experienced massive run-ups before dramatically decreasing in value.
As displayed in a chart from Bloomberg and Morgan Stanley Research, Nasdaq and Bitcoin appear to have followed very similar patterns. However, the timeframe in question is highly skewed — and apparently illustrates Morgan Stanley’s ignorance to the fact that Bitcoin has existed for nearly a decade.
The crypto space is hot property at the moment even in the wake of recent market slumps. More institutionalized finance exchanges and organizations are looking to provide a wider range of products for their clients and these must now include Bitcoin futures. The latest to join the blockchain train is Morgan Stanley.
As the first Bitcoin futures contracts expired and were settled this week, the CBoE hailed them a success and a victory for those bearish on Bitcoin. Morgan Stanley has joined its rivals Goldman Sachs and will begin clearing Bitcoin contracts for its clients according to Business Insider.
In a recent report sent out to clients, Morgan Stanley analyst James Faucette cautioned that the “true” value of Bitcoin might actually be zero.
Zero. Zip. Nada.
The report, titled Bitcoin Decrypted, discussed the difficulty in ascribing value to the digital currency, noting that it behaves like neither a currency nor a store-of-value commodity like gold, silver, etc… Examining several key factors, Faucette points out:
- Bitcoin can’t be valued as a currency because it has no associated interest rate;
- It may be likened to digital gold but, unlike gold itself, which is used in electronics, jewelry, etc.., Bitcoin has no inherent use*;
Many top economists from around the world have come forward to state their opinion on Bitcoin. A former Morgan Stanley economist believes that Bitcoin is one of the most dangerous speculative bubbles he has ever seen.
The Future of Bitcoin
As Bitcoin is constantly reaching a new all-time high price, many top economists and investors have come forward to predict how Bitcoin is going to perform in the future. The most prominent statement came from JPMorgan CEO Jamie Dimon, who stated that Bitcoin is a “a terrible store of value.” Of course, Jamie Dimon has a long history of bashing Bitcoin despite the fact that the company he is CEO of is dabbling in both Bitcoin and blockchain technology.