An investment unit under Morgan Stanley is investigating a stake in bitcoin, according to Bloomberg.
Morgan Stanley Investment Management’s Counterpoint Global, a $ 150 billion investment unit, has investigated whether the cryptocurrency would be a ‘suitable option for its investors’, Bloomberg reports, citing people familiar with the matter . The investment will require regulatory approval, the report added.
If this were to happen, the investment by Counterpoint Global would be one of the many notable movements in cryptocurrency of established companies, banks and investment firms. Bank of New York Mellon, the country’s oldest financial institution, has planned to offer bitcoin transactions, according to The Wall Street Journal. Mastercard said Thursday it will allow merchants to accept certain cryptocurrencies.
Read more: A crypto CEO explains why Tesla will add bitcoin to its balance sheet, create a ‘domino effect’ that will increase the cryptocurrency to $ 100,000 by the end of 2021 – and says Dogecoin is destined for A GameStop style.
Tesla also said it had invested $ 1.5 billion in bitcoin, sending the cryptocurrency about 16% higher early last week. Twitter said Wednesday it is considering adding some bitcoin to its balance sheet.
The reports sent bitcoin prices higher, sending it above $ 48,000 for the first time last week. Bitcoin has risen about 60% so far this year.
Some of Morgan Stanley have been clumsy about the cryptocurrency in the past. In 2017, for example, an Morgan Stanley analyst said the real value of bitcoin was zero. At the time, bitcoin was trading at about $ 14,400.
At least one bitcoin supporter predicted that the price would climb to $ 100.00 this year, but some commentators have urged investors to stay away from the crypto currency while trading at an everyday high. About 1,000 investors, known as whales, control about 40% of the bitcoin market.
U.S. Treasury Secretary Janet Yellen said this week bitcoin is a growing problem.
“I see the promise of these new technologies, but I also see the reality: cryptocurrencies were used to launder the profits of online drug dealers; they were a tool to finance terrorism,” Yellen said.
Correction: An earlier version of this story incorrectly stated that Morgan Stanley was considering a $ 150 billion investment in bitcoin. Morgan Stanley’s $ 150 billion investment unit monitors an investment.