In 2017, financial services company, Morgan Stanley, had a bearish outlook on Cryptocurrency and Bitcoin as a whole. However, for their 2018 market analysis, they are bullish for the 2018 year, going into 2019, and beyond.
Why the complete change of pace? It could be that Morgan Stanley have privately invested over $400million into Bitcoin and wider Alt-Coin projects, or the fact that they are planning on releasing a derivatives project directly to their Client base. Or both.
It’s important to note that the bank is not actually planning to trade Bitcoin or cryptocurrencies directly but rather to offer Bitcoin swap trading tied to futures contracts. Earlier this year, CEO James Gorman said that a trading desk specializing in derivatives tied to digital assets could be a potential service offered to clients.
Futures are contracts in which the buyer has agreed to purchase an asset at an agreed time and price in the future. The same arrangement stands for the party selling the asset as well. These contracts note both the quality and quantity of the assets that are being traded, standardized, and either require physical delivery of the asset being traded or are settled in cash.
According to Bloomberg, the bank already has the measures in place to offer Bitcoin swap trading, however, it will not officially launch any initiative without first ascertaining the level of institutional client demand and completing a thorough internal approval process.
The takeaway here is that there is very strong Institutional interest in the Crypto space and that is growing at rapid rates, daily. A bullish return is on the horizon.