Morgan Stanley Chair Stands by Bitcoin: ‘It’s Not Going Anywhere’

10 months ago 9

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Morgan Stanley Executive Chair – James Gorman has called Bitcoin a speculative asset. Yet he believes it isn’t a fad and is not going away.

It’s been 15 years since the first Bitcoin block was mined. However, the flagship crypto asset has now gained increased attention from traditional finance players due to the applications of spot Bitcoin exchange-traded funds (ETFs).

“I Never Understood Bitcoin as a Store of Value” – Morgan Stanley Chair

James Gorman, who is one of the most popular figures in the world of finance, says that he does not understand how Bitcoin is a store of value. He told Bloomberg:

“I joked once, I wish I bought it at $60 and I am glad I didn’t buy it at $60,000. Its clearly speculative.”

Despite that, Gorman believes that Bitcoin is not going away. He said:

“Bitcoin is not going away. It’s not a fad. I just don’t think it’s a core investment. I think it’s a a speculative asset of which there are plenty of choices.”

Will Spot Bitcoin ETF Bring a Secular Demand?

According to Gorman, Bitcoin should play a very small role in wealthy people’s financial fabric due to its volatile nature. However, other experts are inclined to believe that a spot Bitcoin ETF will generate significant demand from institutional and high-net-worth investors.

Hassan Ahmed, the Country Director for Singapore at Coinbase, told CNBC:

“This spot Bitcoin ETF (exchange-traded fund) for the US markets is really as foundational and as big a deal as people are making it out to be. It’s a structural market change for this asset class that’s coming into its being.

The noise and chatter around this approval are certainly intensifying, and we’ll see how things play out. But the way we see it is that there’s going to be secular demand and fund flows that are going to be coming into this asset class and this asset in particular.”

Also, the Chicago Board Options Exchange (CBOE) Digital President John Palmer believes that more funds will flow in after the approval of the spot Bitcoin ETF. He said:

“I think the spot ETF approval is really bullish for the overall sentiment of the market.

And I think seeing that approval really is going to pave the way for pension funds and Article RIA-based funds to be able to invest assets in a spot Bitcoin ETF where they may not be able to gain that access today and just a native spot Bitcoin token.”

Similarly, on December 26, 2023, BeInCrypto reported how a spot Bitcoin ETF approval could give easy Bitcoin exposure to retirement savers.

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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.