Morgan Stanley Unit Considers Bitcoin Investment: Bloomberg
Morgan Stanley's $150 billion Counterpoint Global investment unit is considering placing a bet on bitcoin, according to a report by Bloomberg, which cited people familiar with the matter.
- In order to move ahead, an investment would need approval by the firm and regulators, Bloomberg noted.
- If true, this investment would not be Morgan Stanley's first exposure to the leading cryptocurrency. It has a nearly 11% stake in the bitcoin-laden business intelligence company MicroStrategy, per CoinDesk's reporting.
- Analysts at Morgan Stanley say bitcoin has potential to strongly compete with the dollar, but acknowledge in a recent report that the more investors "hodl" bitcoin, the weaker its appeal to be used as a currency becomes.
- A spokesperson from the investment bank declined to comment.
- The investment unit manages nearly 20 funds, and Bloomberg reports five of those funds returned gains over 100% last year.
CORRECTION (Feb. 13 15:57 UTC): Corrects that the investment arm has $150 billion under management.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
