Morgan Stanley Unit Considers $150 Billion Bitcoin Investment: Bloomberg

Morgan Stanley’s Counterpoint Global investment unit is considering placing a $150 billion bet on bitcoin, according to a report by Bloomberg, which cited people familiar with the matter.

• In order to move ahead with 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. Already, 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.