Morgan Stanley Bitcoin Bet – Five Things We Know

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  • Bloomberg reported last week that a Morgan Stanley Bitcoin investment was being discussed
  • Not much is known at this stage, except that its Counterpoint Global investment arm is discussing the possibility
  • What do we know about the prospect, and what could it mean for the space?

Bloomberg reported last week that Morgan Stanley’s investment arm was considering a Bitcoin position, news which only added to the fervor around the cryptocurrency. PayPal, MicroStrategy, Tesla, and Mastercard have all bet big on Bitcoin in their own way in the past nine months, but a Morgan Stanley Bitcoin purchase would be on another level. We look at five things that the Bloomberg report told us about its potential Bitcoin buy-in, and what it could mean.

Counterpoint Global Has $150 Billion in AUM

Counterpoint Global, Morgan Stanley’s $150 billion investment arm, is the branch of the bank considering the Bitcoin investment. It has stakes in about 200 companies and oversees about 19 funds, five of which delivered gains in excess of 100% last year.

Approval is Needed From Regulators

Any Morgan Stanley Bitcoin purchase would need to be ratified by both the firm and regulators. This could prove a sticking point, as traditional financiers are yet to be won over by Bitcoin and regulators are notoriously uncertain about its viability as an investable asset.

Investment Amount Remains Unknown

We don’t know how much money Morgan Stanley would put into any Bitcoin purchase, although with $150 billion worth of assets already under management, it’s likely that any purchase will not be a small one.

Reputational Boost

A Morgan Stanley Bitcoin buy-in would represent the biggest reputational boost to the cryptocurrency within the traditional finance sector. While the likes of MicroStrategy, PayPal, and Tesla carry weight in their own field, gaining acceptance by one of the top 40 biggest banks in the world would be another level of adoption.

Morgan Stanley Bitcoin Purchase Would Silence Doubters

If Morgan Stanley were to join the Bitcoin bandwagon it would be one in the eye for the financial press who have been down on the cryptocurrency since its inception and would put them in the position of calling into question the judgement of one of their own.