Cryptocurrencies
Global investment bank Morgan Stanley is setting up a new cryptocurrency research team. "The launch of dedicated crypto research is an acknowledgment of the growing importance of cryptocurrencies and other digital assets in global markets," the bank said.Led by Sheena Shah, the company's lead cryptocurrency analyst, the team will study the impact of cryptocurrencies on both stocks and fixed income globally. Shah will work in London, where she will report to Adam Wood, who leads Morgan Stanley's fintech and payments research team in Europe. She will also report to James Faucette, who leads the company's fintech and payments research team in the US.
Morgan Stanley was among the first major investment banks to embrace cryptocurrency. Last March, the company made three bitcoin funds available to its customers. In the following April, the company then added bitcoin to the investment strategies of 12 mutual funds.
Several other major financial institutions have also set up dedicated cryptocurrency teams, including Bank of America, which has created a crypto research team in July, while wealth management firm Franklin Templeton last week published a job notice for an "investment research analyst" for cryptocurrency.
A growing number of banks d investment has also already begun to offer or is in the process of offering cryptocurrency services to its clients, including names such as Goldman Sachs, Citigroup, Standard Chartered and Wells Fargoe DBS.
Cryptocurrencies slide as market selloff deepens
© Reuters/Dado Ruvic FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration takenLONDON (Reuters) - Prices of cryptocurrencies plunged on Monday as concerns over the spillover risk to the global economy from Chinese property group Evergrande's troubles rippled over to wider markets.
Bitcoin, the world's biggest and best-known cryptocurrency, tumbled more than 8% to $42,453, its lowest level since Aug. 7 before trimming some losses to trade down 7%. It hit a near four-month high above $52,000 on Sept. 6.
Smaller rival Ether, the coin linked to the Ethereum blockchain network, fell more than 10% below $3,000 for the first time since early August.
The loss in the value of cryptocurrencies comes at a time when institutional interest in the space has surged and some investment banks have ramped up their forecasts for cryptocurrencies in the coming months.
'Their fate seems a little tied to equities at the moment, and the price action is incredibly similar too,' said John Marley, CEO of forexxtra, a London-based FX consultancy.
(Reporting by Saikat Chatterjee; Editing by Ritvik Carvalho)