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A $ 150 billion investment arm of Morgan Stanley is considering getting involved in bitcoin, according to a report, as the rising price of the largest cryptocurrency attracts attention on Wall Street.
In another example of growing interest, JPMorgan co-chair Daniel Pinto said Friday that he is “confident” that demand for bitcoins will increase as the Wall Street giant “will have to participate.”
The price of bitcoin touched an all-time high of nearly $ 50,000 on Sunday, a notable increase from a low of $ 4,000 in March 2020. It was down about 1.4% to $ 45,157 at 11am ET Monday.
Tesla’s announcement that it had bought $ 1.5 billion worth of bitcoins in January kicked off a record last week. Mastercard and BNY Mellon also added momentum by moving to open up access to bitcoin.
Read more: A Ruffer portfolio manager invested a portion of his $ 4.8 billion fund in Bitcoin. This is what led him to bet on cryptocurrencies and the other 2 ways he protects himself against worrying speculative bubbles
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 an asset class develops over time that will be used by different asset managers and investors, we will have to participate.”
“The demand is not there yet, but I am sure it will be at some point.”
As Wall Street’s interest in bitcoin rises, here are a few other institutions moving towards cryptocurrencies.
Read more: The CIO of a $ 700 million crypto asset manager discusses why Elon Musk’s gradual acceptance of bitcoin means the digital currency has room to run, and shares why he is launching an over-the-counter fund
Bank of New York Mellon ready to jump into the bitcoin world
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Bank of New York Mellon plans to issue, hold, and transfer customer bitcoins, The Wall Street Journal reported Feb. 11, marking a key advance 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 ‘select cryptocurrencies’
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Mastercard will begin allowing customers to use some cryptocurrencies on its network later this year, although it did not specify which ones.
“We are preparing right now for the future of cryptocurrencies and payments, announcing that this year Mastercard will begin to support select cryptocurrencies directly into our network,” Raj Dhamodharan, executive vice president of digital asset products, said in a blog last Wednesday. .
BlackRock gives green light to bitcoin funds
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BlackRock has authorized two of its funds to invest in bitcoin futures, according to documents filed in January with the Securities and Exchange Commission.
The $ 8.7 trillion asset manager said it could use bitcoin derivatives, among other assets, under BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund.
Tesla bets heavily on bitcoin with a $ 1.5 billion investment
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Elon Musk’s Tesla fueled the latest jump in bitcoin price by announcing that he had invested $ 1.5 billion in bitcoin in January. He also said that he plans to accept bitcoins as payment.
Although not a Wall Street firm, the electric car company’s $ 780 billion market capitalization means that people realize where they put their money. Publicly traded companies like MicroStrategy and Galaxy Digital also have significant bitcoin holdings.
Grayscale entries and ‘whale wallets’ point to increased 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 the tokens directly.
Crypto investment firm Grayscale saw assets under management multiply tenfold in 2020 as the broader adoption of bitcoin brought billions to its trusts. Institutional funds accounted for 93% of all entries in the fourth quarter, 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 Chainanalysis research cited by Coindesk.
