The age of institutions has arrived. With companies like MicroStrategy and Tesla investing billions of dollars into bitcoin – the world’s number one digital currency – it appears many leading companies are finding the confidence to follow suit, and now Morgan Stanley – one of the most prominent financial firms in the world – will step into the bitcoin fray according to recent reports.
Morgan Stanley Is Getting Involved in BTC Trades
Morgan Stanley Investment Management’s Counterpoint Global unit is looking into potentially investing in bitcoin and adding it to the company’s current roster of assets. As it stands, the investment would potentially require approval from certain regulators, but Morgan Stanley is ready to do all it can to get its fingers on a few BTC units down the line.
The company follows a long line of institutions that have seemingly taken an interest in bitcoin investments or that are looking into permitting BTC and crypto payments in the future. Companies that fall into the latter category include social media giant Twitter and car company General Motors. In addition, BNY Mellon – one of the oldest banks in the U.S. – has recently agreed to offer crypto custody services to its clients.
The heavy interest from institutions as of late has seemingly pushed bitcoin into extremely bullish territory. The currency was recently trading for a new all-time high above the $48,000 mark, though at the time of writing, the asset has fallen to just shy of $47,000 per unit, thereby losing about $2,000.
And as it stands, while Morgan Stanley is ready to get involved in BTC’s future, the company has not always seen the asset in a positive light. One analyst in 2017 commented that the value of bitcoin was zero, when in truth, it was trading for more than $14,000 at the time. Still, perhaps companies and individuals really can change…
The Counterpoint Global unit presently overseen nearly 20 individual funds, some of which garnered the organization returns exceeding 100 percent in the year 2020. Odd considering this was the time of COVID and many businesses found themselves closing their doors permanently. Either way, the enterprise saw heavy earnings thanks to its investments in e-commerce and communications companies such as Shopify, Slack, Amazon and Zoom.
But while all this may sound fantastic at first, the fact is that Morgan Stanley’s bitcoin investment clock is likely ticking fast at press time, with new Secretary Treasury Janet Yellen claiming that bitcoin is being used for misleading and illicit projects, and that she’s considering placing limits on crypto use.
Limits on Crypto Activity?
In a recent interview, she stated of the crypto world:
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 traffickers. They’ve been a tool to finance terrorism.