Counterpoint Global, a $150 billion unit of Morgan Stanley Investment Management that has racked up wins in mutual-fund rankings, is exploring whether bitcoin would be a suitable option for its investors.
According to Bloomberg, for the Morgan Stanley unit to move to buy bitcoin, it would require regulatory approval, but it would further lend legitimacy to the flagship cryptocurrency, which has been seeing its price rise over the last few weeks amid growing corporate adoption.
The flagship cryptocurrency has first caught the attention of hedge fund moguls, including Paul Tudor Jones and Alan Howard, and kept on getting attention. Late last year PayPal started letting users buy, sell, and hold crypto, and just last week Mastercard and Bank of New York Mellon revealed they were planning crypto-related services
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According to Tesla’s latest annual report (on Form 10-K), which has been filed with the U.S. Securities and Exchange Commission (SEC), the electric car maker has already invested $1.5 billion in Bitcoin.
Bloomberg points out Counterpoint Global’s review could ultimately result in the firm opting to stay away from bitcoin. While corporate adoption has been growing, some investors have been skeptical because of the cryptocurrency’s price swings.
The report adds that some investors, barred from investing in bitcoin directly, turned to the cryptocurrency via investment vehicles such as the Grayscale Bitcoin Trust or 3iQ’s exchange-traded product.
Counterpoint Global, it’s worth noting, is led by Dennis Lynch and has grown based on its mantra of finding unique companies whose market value can grow significantly. Some enthusiasts believe bitcoin fits the mantra.
It oversees about 19 funds, five of which delivered gains above 100% last year. Its mutual funds have consistently been performing well over the last few years, with last year’s high returns being aided by bets in companies benefiting from the pandemic, such as Shopify, Amazon, Zoom, and Moderna.