As it has been declared in the interview with an unnamed insider at Morgan Stanley, that has been reprinted by SludgeFeed, Morgan Stanley is intending to add cryptocurrency to their trading products within a short period of time. The company's aim is to create a special desk for institutional traders, ICOs, and arbitrage, and also to do it before Goldman Sachs or any of the other major financial institutes do.
The anonymous source claimed that Morgan Stanley is rapidly consulting with money managers and hedge funds which already have money in the space and are concentrated on “firms that are apt to add to their current portfolios as opposed to starting from scratch.”
Truth be told this is the next arms race. EVERYONE IS RUSHING INTO CRYPTOS. Everyone. There isn’t a bank, a fund, a fund company, a former legend attempting to reclaim old glory, private equity, venture capital, lending, exchanges, consulting firms – everybody. It is the digital gold rush. And our firm wants to get there and pull as many levers as we can.
Nasdaq CEO Adena Friedman said CNBC’s Squawk Box last week that creating a Nasdaq cryptocurrency exchange is under consideration which lead to Bitcoin raising an all-time high on the CboE as institutional means came into the market. Goldman Sachs intending not to be left behind has been indicating that it too will set up a trading desk working with cryptocurrency and has recently finished their first high-level crypto-centric position. The firm employed Justin Schmidt, a former trader, as vice president and head of digital asset markets in Goldman’s securities division. The bank is going to have its platform up and launching by the end of summer 2018.
Wall Street’s enter to the cryptocurrency market seems inevitable since institutional investors are stated to push money into the space. The number of cryptocurrency hedge funds has increased eight times since 2016 but stay limited as to what they can do with their money since no bank has yet filled the niche of providing crypto services but, by all indications, this will change by the end of 2018.