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| Morgan Stanley can bet on Bitcoin |
Morgan Stanley investment bank (Morgan Stanley) may be the last financial institution to bet on Bitcoin to track the rally.
Bloomberg reports that Morgan Stanley MSIM's investment arm is considering adding Bitcoin to its potential betting list.
Counterpoint Global, with $ 150 billion, is investigating whether cryptocurrencies will be the right choice for its investors.
The investment must be approved by the companies and the regulators. Morgan Stanley's proposal would shift the focus of the name to the volatile asset class that is still difficult to recognize in most traditional financial industries.
The coin quadrupled in four months, sparking customer interest and making digital assets hard to ignore.
After attracting the attention of hedge fund owners, the new cryptocurrency has made headway with bigger companies like MasterCard and BNY Mellon.
This review may eventually lead to Morgan Stanley dropping Bitcoin. The previous highs of cryptocurrencies caught the attention of Wall Street, but they faded quickly.
Since the birth of Bitcoin, many uncertain factors in the industry have centered around unexpected fluctuations in Bitcoin's price and lack of buying opportunities.
Billions of dollars have been invested in cryptocurrencies, including the Grayscale Bitcoin Trust, a digital currency investment product that individual investors can buy and sell on a brokerage account.
Institutional investors, who are prohibited from directly holding Bitcoin under the Currency Act, have confiscated these funds.
For Wall Street corporations, the inability to make Bitcoin available to these clients increases the risk of losing it to other managers.
This could spark new discussions in the industry about unlocking digital crypto assets.
Counterpoint Global is growing by betting on unique companies that can greatly increase the market value, and enthusiasts believe this method works extremely well for Bitcoin.
Morgan Stanley's investment division manages about 19 funds, five of which are back more than 100% in 2020.
In recent years, mutual funds have consistently ranked first in the rating.
Bets last year on companies profiting from the outbreak have boosted such high performance as e-commerce and streaming entertainment.
Notable investments include Amazon, Shopify, Slack, Zoom, and Moderna.
Despite the size of Morgan Stanley's investment arm, the company is still heavily invested and only owns stakes in about 200 companies.