- Financial giants, JP Morgan and Morgan Stanley set their sights on Bitcoin.
- JP Morgan’s co-vice President believes that banks and other financial institutions will embrace Bitcoin soon
- A department in Morgan Stanley reportedly lining up a $150 billion investment in Bitcoin.
- Tesla, BNY Mellon, Mastercard, and Grayscale have taken calculated steps to invest in Bitcoin and other crypto-currencies.
According to reports trickling in, a department of financial giant, Morgan Stanley is lining up a $150 billion investment in Bitcoin. With Bitcoin’s experiencing new highs with increasing regularity, it has become difficult for the major players of the financial industry to ignore this asset class.
Similarly, J.P Morgan’s co-president Daniel Pinto said he is confident that institutional demand for Bitcoin will spike in the coming months and his firm will have no choice but to get involved.
Institutional Interest Soars: The Big Players Are Here
J.P Morgan’s co-president Daniel Pinto in an interview with CNBC said, “If an asset class develops that is going to be used by different asset managers and investors, we’ll have to get involved.
The demand isn’t there yet, but I’m sure it will be at some point.” While an investment arm of Morgan Stanley, Counterpoint Global has lined up $150 billion with the intent to get in on the crypto-currency train.
J.P Morgan is an American multinational investment bank with a total asset of over $3.3 trillion while Morgan Chase is also an American multinational investment bank with a total asset base of $895 billion. Founded in 1935, the firm has grown the have over 60,000 employees with a presence in 44 countries.
Other firms looking to diversify their investments include automobile giants, Tesla which recently splurged $1.5 billion on Bitcoin purchase. Mastercard and BNY Mellon announced that they will allow crypto-currencies on their platforms for consumers.
The executive Vice President of Mastercard, Raj Dhamodharan said, “We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network.”
BlackRock’s CEO Larry Fink has nudged funds to be allocated to Bitcoin Futures according to reports on filings with the Security and Exchange Commission. While Grayscale’s Bitcoin Trust has been swelling, signifying a major interest from institutional investors.
On The Flipside
- The US Government will not allow Bitcoin to become the reserve currency of the world by heavily regulating the industry, warns analysts.
- Dan Nathan noted that Elon Musk’s Tesla investment of $1.5 billion in Bitcoin could spur the US government to make sweeping legislation
- The benefits of the short term will be nothing compared to the slump if government regulations kick in
Effect of Institutional Investment On Bitcoin
Following Elon Musk’s Tesla’s announcement that the company had purchased $1.5 billion worth of Bitcoin, we saw an unprecedented Bitcoin price rally that had the asset spiking to over $50,000. This record high stands in stark contrast to a low of around $4,000 in March 2020.
With Mastercard and BNY Mellon unveiling plans to incorporate crypto-currencies, we could see another major price rally for Bitcoin.
Analysts have predicted that Bitcoin could easily hit 100k in the coming months. An increase in “whale wallets” holding at least 1,000 bitcoin could also be a sign sure sign that institutional investors are buying up the cryptocurrency, says Chainlink.