March 28, 2024

Morgan Stanley division plans to invest in bitcoin

Counterpoint Global, part of financial conglomerate Morgan Stanley, is considering buyingBitcoin, Bloomberg reports, citing sources.

According to them, the investment division,with $ 150 billion under management, must obtain permission from senior management and regulators to start working with cryptocurrency. Counterpoint analysts are now trying to decide if Bitcoin is the right investment proposition for their clients. The firm specializes in "unique companies whose market value can increase significantly." The group manages 19 funds, of which five brought investors more than 100% in 2020.

Back in 2017, Morgan Stanley explored the possibility ofcreated a Bitcoin swap product, but never launched it. It is possible that this time, too, the bank will ultimately prefer to stay on the sidelines, Bloomberg notes.

Just a few days ago, Morgan analystsStanley took note of the decline in bitcoin liquidity, which they said was caused by investors' reluctance to sell. This, in turn, limits the ability to use cryptocurrency as a means to carry out transactions, including when concluding transactions on exchanges, they added. At the same time, bank employees admitted that the situation could improve if bitcoin continues to spread among services such as PayPal.

Morgan Stanley had recently significantly expanded its position at MicroStrategy, which has invested over $ 1 billion in bitcoin to date.

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