An funding unit beneath Morgan Stanley is exploring a $150 billion bitcoin purchase, in line with Bloomberg.
Bloomberg reported Morgan Stanley Funding Administration’s Counterpoint World unit was wanting into the funding, citing individuals accustomed to the funding. Bloomberg reported the funding would require regulatory approval.
The funding can be one in every of a number of high-profile strikes into cryptocurrency from well-established firms, banks, and funding companies. Financial institution of New York Mellon, the nation’s oldest monetary establishment, deliberate to offer bitcoin transactions, in line 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 12 months however some commentators have urged buyers to stay away from the cryptocurrency whereas it is buying and selling at all-time highs. About 1,000 buyers, referred to 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 fact: cryptocurrencies have been used to launder the income of on-line drug traffickers; they have been a device to finance terrorism,” Yellen mentioned.