Bitcoin ($BTC) continues to be a focus for institutional investors. These investors include banks, and a Morgan Stanley executive has made significant statements on the subject.
Speaking at a Bitcoin conference in Las Vegas, Amy Oldenburg, head of digital asset strategy at Morgan Stanley, stated that there is a high probability that US banks will include Bitcoin in their financial statements in the future.
However, he added that regulatory barriers remain a significant variable.
Amy Oldenburg stated that she expects US banks to include Bitcoin on their balance sheets in the long term.
However, Oldenburg explained that for this to happen, several challenges need to be resolved, including US Fed regulations, Basel capital standards, and coordination among global regulatory bodies.
According to Oldenburg, large banks like Morgan Stanley need approval from the FED, compliance with Basel regulations, and authorization from multiple global regulators in order to hold $BTC.
Oldenburg added that the recent regulatory environment has become more favorable for the expansion of digital asset businesses.
As you may recall, Morgan Stanley recently launched MSBT, a Bitcoin-linked exchange-traded product (ETP).
At this point, Oldenburg cited MSBT as an example of a US bank’s first Bitcoin-backed ETP product, noting that MSBT attracted over $100 million in funding in its first six days after launch.
Oldenburg specifically emphasized that all of these fund inflows were in the form of investments directed by clients themselves, and said, “Despite not yet being offered as an advisory service within the asset management platform, there has been strong demand.”
*This is not investment advice.
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