Morgan Stanley Investment Division Considering Bitcoin

Morgan Stanley, Counterpoint Global, bitcoin, cryptocurrency

Counterpoint Global, the $150 billion Morgan Stanley Investment Management investing arm, is taking a deep dive into bitcoin and cryptocurrency, Bloomberg reported on Monday (Feb. 15), citing sources.

Bitcoin and crypto are largely seen as volatile assets fighting to gain entry into the traditional financial industry. The acceleration in price has piqued customers’ interest, making the digital asset “impossible to ignore,” Bloomberg said.

The Morgan Stanley unit has scored mutual fund wins and is looking into whether the cryptocurrency would be a worthwhile choice for its investors, according to sources, per Bloomberg.

Cryptocurrencies have gained acceptance inroads into mainstream firms, with acceptance by Mastercard and Bank of New York Mellon. Tesla recently also got behind bitcoin with a $1.5 billion investment and plans to take the digital currency and other cryptos as payment. Skepticism about bitcoin and other cryptocurrencies centers on the unpredictable price swings and ensuing pain points in its payment acceptance. 

Dennis Lynch, head of Counterpoint Global, gambles on different firms that could align with the approach that led it to bitcoin and other crypto, the article said. The group oversees about 19 funds; five saw 100 percent increases last year.

BNY Mellon said earlier this month that it is launching a new vertical focused on accelerating investments in bitcoin, cryptocurrency and other digital assets. The bank said it will advance custody and investment services by using the blockchain. Mastercard has said it will start integrating cryptocurrency capabilities this year, joining Square, PayPal, BlackRock and others in the move to include digital currencies. 

Bitcoin and other cryptocurrencies are at the hallmarks of new investment highs as speculation aligns with celebrity endorsements. The Office of the Comptroller of the Currency announced new guidance that says federally chartered banks can use stablecoins for payments.