Bitcoin is currently experiencing unprecedented demand from companies and institutional investors. Now big banks like Morgan Stanley are showing their interest in digital gold and are now investing indirectly in BTC. The real big players are slowly coming onto the Bitcoin floor and confirm the great potential of the first crypto currency.
Morgan Stanley is a US investment banking and securities trading company headquartered in New York. The bank is one of the 30 major banks that have been classified by the Financial Stability Board (FSB) as a “systemically important financial institution”. Such names further legitimize Bitcoin and also make it more interesting for other banks and automatically attract more attention.
Bank indirectly invests in Bitcoin
Morgan Stanley did not invest directly in Bitcoin, but increased its stake in MicroStrategy Inc. to more than 10.9%. The investment reportedly came through Morgan Stanley’s investment division last year.
According to Bloomberg, the bank held 792,627 shares of MicroStrategy through December. This is confirmed by an official report from the US Securities and Exchange Commission. MicroStrategy is often referred to as the unofficial Bitcoin ETF.
MicroStrategy with Michael Saylor as a BTC pioneer
Morgan Stanley has thus invested indirectly in Bitcoin, because MicroStrategy is currently one of the listed companies with the largest share of BTC. The company’s CEO, Michael Saylor, is a strong believer in Bitcoin and takes every opportunity to express his confidence.
In total, the company holds 70,470 Bitcoin worth approximately USD 2,826,875,862 (approx. 3 billion). Michael Saylor has also invested around 170 million USD in BTC with his private fortune.
With this big step he has also encouraged other companies to invest in digital gold. Most recently, he responded to a tweet from Elon Musk and tried to introduce him to an investment in Bitcoin. His main argument was that Tesla currently holds over $ 1 billion in US dollars and that inflation is eating up the money.
He also uttered strong words that clearly show how convinced the CEO of Bitcoin is:
If you own the most coveted asset in the universe why would you ever sell it?
MicroStrategy stock is up 37% this year. Compared to a 1.8% increase in the S&P 500, it shows how investors in the traditional market are reacting to investing in Bitcoin. Overall, the company’s stock has risen by more than 300% after its first investment in BTC.
The rush of institutional investors on Bitcoin continues
But according to reports from Grayscale, more and more institutional investors want to invest in BTC. The assets to be managed are still growing rapidly. According to the company’s latest tweet, the AUM (Assets Under Management) is currently at $ 28.4 billion. 85% of this sum is held in the Grayscale Bitcoin Trust.
Bitcoin is now held as a hedge against the uncertainties of central banks’ monetary policy. Due to the current economic problems, the amount of money has increased extremely last year. Thus, the money that was already in circulation loses value and purchasing power decreases. The strong inflation will burn large chunks of wealth, hence the flight to long-term assets like Bitcoin.
This is probably one of the reasons why the Bitcoin price has risen so sharply in recent months and is reaching a new all-time high almost every day. The BTC price is now around USD 40,000, roughly twice the all-time high of 2017.
We are excited to see where the BTC rally will go, when the correction will start and how strong it will be.