An funding unit below Morgan Stanley is exploring a $150 million bitcoin purchase, in keeping with Bloomberg.
Bloomberg reported Morgan Stanley Funding Administration’s Counterpoint World unit was trying into the funding, citing folks acquainted with the funding. Bloomberg reported the funding would require regulatory approval.
The funding could be certainly one of a number of high-profile strikes into cryptocurrency from well-established corporations, banks, and funding companies. Financial institution of New York Mellon, the nation’s oldest monetary establishment, deliberate to offer bitcoin transactions, in keeping with The Wall Road Journal. Mastercard on Thursday mentioned it will allow merchants to simply accept choose cryptocurrencies.
Learn extra: A crypto CEO breaks down why Tesla adding bitcoin to its balance sheet will create a ‘domino effect’ that lifts the cryptocurrency to $100,000 by the end of 2021 — and says Dogecoin is destined for a GameStop-style plunge
Tesla additionally mentioned it had invested $1.5 billion into bitcoin, sending the cryptocurrency about 16% higher early final week. Twitter on Wednesday mentioned it was considering adding some bitcoin to its stability sheet.
Some at Morgan Stanley have been bearish on the cryptocurrency up to now. In 2017, for instance, an analyst at Morgan Stanley mentioned the true worth of bitcoin was zero. On the time, bitcoin traded at about $14,400.
At the least one bitcoin backer predicted its worth would climb to $100,00o this yr however some commentators have urged traders to stay away from the cryptocurrency whereas it is buying and selling at all-time highs. About 1,000 traders, generally known as whales, management about 40% of the bitcoin market.
US Treasury secretary, Janet Yellen, mentioned this week that bitcoin was “a growing problem.”
“I see the promise of those new applied sciences, however I additionally see the truth: cryptocurrencies have been used to launder the earnings of on-line drug traffickers; they have been a software to finance terrorism,” Yellen mentioned.