The cryptocurrency market has grown to become a $2 trillion industry, and it is expected to get even bigger in the coming years
The cryptocurrency space has experienced tremendous growth over the past few years. The market has grown to become a $2 trillion industry, and that has attracted the attention of traditional financial institutions.
Morgan Stanley CEO James Gorman stated that he doesn’t think cryptocurrencies are going away despite the low demand from the bank’s investors. The CEO mentioned this during an earnings call with analysts yesterday.
Gorman said, “I don’t think crypto’s a fad, I don’t think it’s going away. I don’t know what the value of bitcoin should or shouldn’t be, but these things aren’t going away, and the blockchain technology supporting it is obviously very real and powerful.”
The CEO added that cryptocurrencies aren’t a huge part of their business at the moment due to the low client demand. However, the situation could change in the future, and the bank is ready to evolve and provide crypto services to its clients.
Morgan Stanley remains one of the leading banks with an interest in the cryptocurrency space. Although the bank doesn’t directly offer access to cryptocurrencies, it allows private clients to gain indirect access to the crypto market.
In March, the bank launched the Morgan Stanley funds, making it possible for individual investors with a minimum of $2 million or investment firms with at least $5 million to gain access to cryptos. The crypto funds are from Galaxy Digital, with another shared one from FS Investments and NYDIG.
Earlier this year, Morgan Stanley also bought over 28,000 shares of Grayscale’s Bitcoin Trust as it seeks to gain exposure to Bitcoin and other cryptocurrencies. Morgan Stanley is not alone in this category. Over the past few months, numerous financial institutions have indicated the desire to grant their wealthy clients access to cryptocurrencies.
Goldman Sachs, JPMorgan, Citi bank and BNY Mellon have all indicated the desire to allow their wealthy clients to gain access to cryptocurrencies via crypto funds.