FX.co ★ Morgan Stanley likely to bet on bitcoin in its investment arm

As reported by Bloomberg, Counterpoint Global, a unit of Morgan Stanley Investment Management, is exploring the possibility of investing in the first cryptocurrency. Meanwhile, the firm's currency strategists are analysing the benefits and risks of such investment.

However, to go ahead with its plans, the $150 billion investing arm of Morgan Stanley is required to receive approval from the parent company and regulators. According to the bank's representatives, Counterpoint Global specializes in making long-term bets on companies whose market value is constantly growing. Amid surging interest in bitcoin from major investors, the company decided to invest in the main digital asset despite the crypto market’s high volatility.

Earlier, in January 2021, financial conglomerate Morgan Stanley acquired an 11% stake in MicroStrategy, a firm actively investing in virtual assets. Morgan Stanley's chief global strategist Ruchir Sharma speculated that bitcoin could replace the US dollar as a reserve currency in the near future.