Morgan Stanley, one of the largest US investment banks, is reportedly considering investing in bitcoin (BTC).
Bloomberg reported that $ 150 billion, Morgan Stanley’s Counterpoint Global investment arm, could put Bitcoin on its “playlist.”
Bitcoin is starting to recover from the news
In the hours before the news broke, the price of bitcoin dropped by almost 4% from $ 48,000 to $ 46,252 on Binance.
Bitcoin price began to recover when the news broke, from about $ 46,300 to over $ 47,300, or nearly 3%.
Counterpoint Global by Morgan Stanley sees Bitcoin as a great investment for two main reasons.
First, Morgan Stanley is the leading financial institution in the United States, and its influence in the banking sector is enormous. Secondly, it happened after the bank increased its stake in MicroStrategy, which has raised over $ 1 billion from bitcoin so far.
Bloomberg reports that Counterpoint Global is “looking into whether cryptocurrency would be the right choice for investors, according to people familiar with the matter.”
The company will still need approval from the relevant parties and regulatory authorities. Even if the investment arm of the bank decides to invest in bitcoins, it may take some time before they pay off.
The news comes just a month after Morgan Stanley increased its stake in MicroStrategy to nearly 650,000 shares, the equivalent of more than 10% of the company.
MicroStrategy, a US registered trading information company, has taken the cryptocurrency market by storm after massive accumulation of BTC as assets. The share price has also shown incredible gains in recent months, beating even BTC.
Since late 2020, MicroStrategy, led by CEO Michael Sailor, has continuously invested in bitcoin and held workshops to help other companies follow suit.
For example, on February 4, MicroStrategy held a workshop with 1,400 companies to discuss “Bitcoin corporate strategy” and how to get a deal with BTC as a company.
Public perception of Bitcoin is improving
The combination of a large influx of institutional capital into the bitcoin market and voice support for cryptocurrency by financial institutions improves the public perception of bitcoin.
As a result, banks and public companies are forced to either explain why they did not invest in BTC, or join it.
Speaking to CNBC, JPMorgan Co-Chair and COO Daniel Pinto said the bank could support bitcoin trading if it sees sufficient demand. He said:
“If the asset class evolves over time for use by various asset managers and investors, we must get involved. There is no demand yet, but I’m sure it will appear at some point. ”
Generally speaking, many financial institutions are starting to support Bitcoin and the cryptocurrency sector, which benefits the market infrastructure as a whole.
As reported by Cointelegraph, BNY Mellon also plans to sponsor Bitcoin for the foreseeable future.