Morgan Stanley says it’s harvest time as Bitcoin enters ‘fall’ season

Morgan Stanley strategists say the crypto market has entered the “fall season” in Bitcoin’s four-year cycle, advising investors to harvest their gains before the potential onset of winter. 

In a podcast episode titled Crypto Goes Mainstream, Denny Galindo, an investment strategist at Morgan Stanley Wealth Management,

Institutional investors still view Bitcoin as a macro hedge against inflation

Even though BTC remains volatile, institutional investors remain optimistic.

Michael Cyprys, head of US brokers, asset managers and exchanges at Morgan Stanley Research, said in the podcast that despite its volatility, institutional investors have started to view Bitcoin as a legitimate component of diversified portfolios. 

“Some institutional investors view Bitcoin as digital gold or a macro hedge against inflation and monetary debasement,” Cyprys said, noting that ETFs have made exposure easier. “But even that’s been a debate in the marketplace.”

He added that institutional allocations tend to be slower-moving as large investors cannot immediately change investment strategies or portfolio allocations. This is because of internal processes, risk committees and long-term mandates. 

Still, he said, adoption is increasing as regulation and ETF infrastructure have lowered barriers to entry. Cyprys pointed out that spot Bitcoin and Ether ETFs have brought billions in assets under management (AUM) into the space. 

SoSoValue data indicates that US spot Bitcoin ETFs currently have total net assets exceeding $137 billion, while spot Ether ETFs have $22.4 billion.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.