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A $ 150 billion investment arm from Morgan Stanley is evaluating bitcoin involvement, according to a report, as the rising price of the largest cryptocurrency attracts attention on Wall Street.
In another example of rising interest, JPMorgan co-chairman Daniel Pinto said on Friday that he is “right” that demand for bitcoin will increase to the point that the Wall Street giant “has to get involved”.
Bitcoin’s price reached an all-time high of almost $ 50,000 on Sunday, a notable increase from a low of $ 4,000 in March 2020. It fell about 1.4% to $ 45,157 at 11am ET on Monday.
Tesla’s announcement that it had bought $ 1.5 billion in bitcoins in January led to a record increase last week. Mastercard and BNY Mellon also gave momentum, opening up access to bitcoin.
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Counterpoint Global, a unit of Morgan Stanley, is now exploring whether to invest in cryptocurrencies, according to Bloomberg. Morgan Stanley declined to comment.
JPMorgan’s Pinto told CNBC on Friday: “If over time an asset class develops that will be used by different asset managers and investors, we will have to be involved.”
“The demand is not yet there, but I am sure it will arrive at some point.”
As Wall Street’s interest in bitcoin increases, here are some other institutions moving towards cryptocurrencies.
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Bank of New York Mellon ready to enter the world of bitcoin
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Bank of New York Mellon plans to issue, hold and transfer bitcoin from customers, The Wall Street Journal reported on February 11, marking a key development to bring cryptocurrencies to the main market.
America’s oldest bank will soon allow digital currencies to be treated in the same way as more orthodox investments in its asset management system.
Mastercard to support ‘select cryptocurrencies’
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Mastercard will begin allowing customers to use some cryptocurrencies on its network later this year, although it has not specified which ones.
“We are now preparing for the future of cryptography and payments, announcing that this year Mastercard will begin supporting selected cryptocurrencies directly on our network,” said Raj Dhamodharan, executive vice president of digital asset products, on a blog last Wednesday.
BlackRock gives funds green light on bitcoin
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BlackRock has authorized two of its funds to invest in bitcoin futures, according to the January filings with the Securities and Exchange Commission.
The $ 8.7 trillion asset manager said he could use bitcoin derivatives, among other assets, under the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund.
Tesla bets high on bitcoin with $ 1.5 billion investment
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Elon Musk’s Tesla boosted the most recent jump in the price of bitcoin by announcing that it had invested $ 1.5 billion in bitcoin in January. He also said he plans to accept bitcoin as a form of payment.
Although not a Wall Street company, the electric car company’s $ 780 billion market capitalization means people realize where it puts its money. Companies listed as MicroStrategy and Galaxy Digital also have significant holdings in bitcoins.
Grayscale streams and ‘whale portfolios’ point to high interest
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Large entries in the grayscale Bitcoin Trust are a sign that institutional investors are increasingly interested in cryptocurrencies, analysts say, as the rules of many companies prevent them from buying tokens directly.
Investment firm Crypto Grayscale saw assets under management increase tenfold in 2020, as broader adoption of bitcoin drove billions into its funds. Institutional funds accounted for 93% of all fourth quarter inflows, according to the quarterly report published in January.
An increase in the number of “whale wallets” containing at least 1,000 bitcoin could also be a sign that institutional investors are buying the cryptocurrency, according to the Chainanalysis survey cited by Coindesk.