Speaking at a Reuters conference in New York on Thursday, Morgan Stanley CEO James Gorman said: cryptocurrency He said he did not see the units as a temporary fad. He believes that cryptocurrencies will be permanent.
Gorman also says that he cannot place an intrinsic value on this newly emerged entity.
Gorman added that he usually doesn’t like to invest in things that have such a wide range of consequences.
Morgan Stanley CEO Called Cryptocurrencies Speculative Assets
In an interview with CNBC’s “Mad Money” program in September, Gorman said that crypto is “by definition” a speculative asset. He also stated that he does not see them as a new means of storing value.
At the time, Gorman also confirmed that he did not own any cryptocurrencies and added that he was happy not to buy Bitcoin at $60,000.
Stating that many investors are hype, Gorman compared the latest crypto craze to the dot-com bubble of the late 90s.
Morgan Stanley has invested millions of dollars in shares of the Grayscale Bitcoin Trust. It even owned more GBTC shares than Ark Invest by the end of 2021. In a recent report, New York-based banking giant Morgan Stanley compared Bitcoin to Tesla.
Morgan Stanley did not say in a research report that the collapse of FTX and Alameda triggered another de-leverage process in the crypto markets, which would likely encourage further “cryptocurrency tightening”.
Morgan Stanley notes that many events are the cause of the recent surge in the cryptocurrency market, but the key issue is “how to valuate crypto tokens that provide a service but do not give the token holder a stake in the company (such as equity) or a right to assets (such as debt) in the event of default.” told.
*Not investment advice.
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