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A $ 150 billion investment arm of Morgan Stanley is planning to get involved in bitcoin, a report says, as the biggest cryptocurrency’s price spike draws attention on Wall Street.
In another example of the growing interest, JPMorgan co-chairman Daniel Pinto said on Friday he was “sure” that demand for Bitcoin will increase as the Wall Street giant “needs to be involved.” .
The price of bitcoin hit an all-time high of nearly $ 50,000 on Sunday, a remarkable increase from $ 4,000 in March 2020. It was down about 1.4% to $ 45,157 on Monday at 11am ET.
Tesla’s announcement that it bought $ 1.5 billion worth of bitcoin in January pushed it to record highs last week. Mastercard and BNY Mellon have also given new impetus by opening up access to bitcoin.
Read more: A Ruffer portfolio manager invested a portion of his $ 4.8 billion fund in Bitcoin. Here’s what prompted him to bet on crypto – and the 2 other ways he hedges against disturbing speculative bubbles
Counterpoint Global, a unit of Morgan Stanley, is currently exploring the opportunity to invest in cryptocurrencies, according to Bloomberg. Morgan Stanley declined to comment.
JPMorgan’s Pinto told CNBC on Friday: “If over time develops an asset class that will be used by different asset managers and investors, we will need to be involved.”
“The demand is not there yet, but I’m sure it will be at some point.”
As Wall Street’s interest in bitcoin grows, here are a few other institutions that are moving towards cryptocurrency.
Read more: CIO of $ 700 Million Crypto Asset Manager Explains Why Elon Musk’s Gradual Acceptance of Bitcoin Means Digital Currency Has Room to Work – and Why He’s Launching an OTC Fund
Bank of New York Mellon to enter the world of Bitcoin
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Bank of New York Mellon plans to issue, hold and transfer its clients’ bitcoin, the Wall Street Journal reported on February 11, marking a key development in bringing cryptocurrencies into the mainstream.
America’s oldest bank will soon allow digital currencies to be treated the same as more orthodox investments in its asset management system.
Mastercard to support certain crypto-currencies
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Mastercard will begin allowing customers to use certain cryptocurrencies on its network later this year, although it has not specified which ones.
“We are currently preparing for the future of crypto and payments, announcing that this year Mastercard will begin supporting certain cryptocurrencies directly on our network,” said Raj Dhamodharan, executive vice president of products, last Wednesday. digital assets.
BlackRock gives the green light to funds on Bitcoin
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BlackRock has authorized two of its funds to invest in bitcoin futures contracts, according to documents filed in January with the Securities and Exchange Commission.
The $ 8.7 trillion asset manager has said he may use Bitcoin derivatives, among other assets, as part of the BlackRock and BlackRock Global Allocation Fund strategic income opportunities.
Tesla bets big on Bitcoin with $ 1.5 billion investment
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Elon Musk’s Tesla propelled the latest bitcoin price hike by announcing that he had invested $ 1.5 billion in bitcoin in January. He also said he plans to accept bitcoin as a form of payment.
While not a Wall Street company, the electric car company’s $ 780 billion market cap means people are noticing where it is putting its money. Listed companies such as MicroStrategy and Galaxy Digital also hold large holdings of bitcoin.
Grayscale feeds and “ whale wallets ” indicate heightened interest
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The massive inflows into the Grayscale Bitcoin Trust are a sign that institutional investors are increasingly interested in cryptocurrency, analysts say, as many companies’ rules prevent them from directly buying tokens.
Crypto investment firm Grayscale saw its assets under management increase tenfold in 2020 as the wider adoption of bitcoin drove billions of dollars into its trusts. Institutional funds accounted for 93% of all fourth quarter inflows, according to its quarterly report released in January.
An increase in the number of “whale wallets” containing at least 1,000 bitcoins could also be a sign that institutional investors are buying the cryptocurrency, according to a Chainanalysis study cited by Coindesk.
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