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A $ 150 billion investment arm from Morgan Stanley reportedly weighs in on its involvement in bitcoin as the rising price of the largest cryptocurrency draws attention to Wall Street.
In another example of the growing interest, Daniel Pinto, co-president of JPMorgan, said Friday he is “sure” that demand for bitcoin will increase to the extent that the Wall Street giant “will have to get involved. “
The bitcoin price hit a high of nearly $ 50,000 on Sunday, a remarkable rise from a low of $ 4,000 in March 2020. It fell about 1.4% to $ 45,157 on Monday at 11:00 ET. .
Tesla’s announcement that it bought $ 1.5 billion in bitcoin in January gave a boost to record highs last week. Mastercard and BNY Mellon also added impetus by moving to open access to bitcoin.
Read more: A Ruffer portfolio manager has invested a portion of his $ 4.8 billion fund in Bitcoin. Here’s what prompted him to bet on crypto – and the two other ways he can fend off worrying speculative bubbles
Counterpoint Global, a unit of Morgan Stanley, is now investigating, according to Bloomberg, whether it should invest in cryptocurrencies. Morgan Stanley declined to comment.
JPMorgan’s Pinto told CNBC on Friday: “If, over time, an asset class is developed that will be used by different asset managers and investors, we will have to be involved.”
“The question is not there yet, but I’m sure it will be at some point.”
As Wall Street’s interest in bitcoin builds, there are a few other institutions moving in the direction of cryptocurrencies.
Read more: The CIO of a $ 700 million crypto asset manager breaks down why Elon Musk’s gradual adoption of bitcoin means the digital currency has room to manage – and shares why it’s launching an over-the-counter fund
Bank of New York Mellon jumps into bitcoin world
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Bank of New York Mellon plans to issue, hold and transfer customers’ bitcoin, The Wall Street Journal reported on February 11, which is a major development to bring 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 supports ‘selected cryptocurrencies’
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Mastercard will enable customers to use a number of cryptocurrencies on its network later this year, although it has not specified.
“We are now preparing for the future of crypto and payments, and announce that Mastercard will be supporting selected cryptocurrencies directly on our network this year,” said Raj Dhamodharan, executive vice president of digital asset products, last Wednesday. said a blog.
BlackRock gives funds the green light for bitcoin
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According to the January filing with the Securities and Exchange Commission, BlackRock has authorized two of its funds to invest in bitcoin futures contracts.
The $ 8.7 trillion asset manager said he could use bitcoin derivatives under the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund, among others.
Tesla bets big on bitcoin with $ 1.5 billion investment
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Elon Musk’s Tesla has driven the latest rise in the bitcoin price by announcing that it invested $ 1.5 billion in bitcoin in January. It also said it plans to accept bitcoin as payment.
Although it is not a firm on Wall Street, it means that the electricity company’s $ 780 billion market capitalization means that people take note of where they put their money. Listed companies such as MicroStrategy and Galaxy Digital also have significant bitcoin holdings.
Inflow of gray scales and ‘whale portfolios’ indicates increased interest
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Analysts believe that large inflows into the Grayscale Bitcoin Trust are a sign that institutional investors are increasingly interested in cryptocurrency, as the rules of many businesses prevent them from buying the tokens directly.
Crypto investment firm Grayscale’s assets under management increased tenfold in 2020 as the greater acceptance of bitcoin drove billions into its trusts. According to the quarterly report published in January, institutional funds accounted for 93% of all inflows from the fourth quarter.
An increase in the number of “whale portfolios” containing at least 1,000 bitcoin could also be a sign that institutional investors are buying the cryptocurrency, according to Chain analysis research quoted by Coindesk.