Morgan Stanley announced that it considers Crypto to be a new asset class. The firm notes that while retail investment has slowed, institutional investment has increased dramatically. The bank’s thesis states that the vast majority of new investment into crypto and blockchain has come from institutional investors, venture capital firms and private equity. Investors from the USA comprise 50% of the new cash flow, with China at a distant 9% and the UK trailing with 6%.
The report notes the stagnation of the market in 2018. However, it also notes that with the next phase of industry development and growth, some large returns are still to be yielded with 2019 being marked as a turnaround year.