A Morgan Stanley investment unit is exploring a stake in bitcoin, according to Bloomberg.
Counterpoint Global at Morgan Stanley Investment Management, a $ 150 billion investment unit, was investigating whether cryptocurrency would be a “suitable option for its investors,” Bloomberg reported, citing people familiar with the matter. The investment would require regulatory approval, the report added.
If it did, Counterpoint Global’s investment would be one of several high-profile cryptocurrency moves by well-established companies, banks and investment firms. Bank of New York Mellon, the country’s oldest financial institution, planned to offer bitcoin transactions, according to The Wall Street Journal. Mastercard said on Thursday that it will allow merchants to accept selected cryptocurrencies.
Read more: A crypto CEO explains why Tesla adding bitcoin to its balance sheet will create a ‘domino effect’ that raises the cryptocurrency to $ 100,000 by the end of 2021 – and says Dogecoin is destined for a GameStop-style dive
Tesla also said it invested $ 1.5 billion in bitcoin, raising the cryptocurrency by about 16% at the beginning of last week. Twitter said on Wednesday that it is considering adding bitcoins to its balance sheet.
The reports raised bitcoin prices, sending it to over $ 48,000 for the first time last week. Bitcoin has gained about 60% so far this year.
Some at Morgan Stanley have been pessimistic about cryptocurrency in the past. In 2017, for example, an analyst at Morgan Stanley said the real value of bitcoin was zero. At the time, bitcoin was trading at around $ 14,400.
At least one bitcoin sponsor predicted that its price would rise to $ 100,000 this year, but some commentators have asked investors to stay away from cryptocurrency while it is trading at its peak. About 1,000 investors, known as whales, control about 40% of the bitcoin market.
U.S. Treasury Secretary Janet Yellen said this week that bitcoin is “a growing problem”.
“I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug dealers; have been a tool to finance terrorism, ”said Yellen.
Correction: An earlier version of this story incorrectly stated that Morgan Stanley was considering an investment of $ 150 billion in bitcoin. Morgan Stanley’s $ 150 billion investment unit is eyeing an investment.