Morgan Stanley, i of the biggest investment banks in the U.South., is reportedly because investing in Bitcoin (BTC), according to reports.

Bloomberg reported that Morgan Stanley'due south $150 billion investing arm chosen Counterpoint Global could identify Bitcoin to "its list of possible bets."

BTC/USDT ane-hour price chart (Binance). Source: TradingView.com

Bitcoin begins recovery after the news

Hours earlier the news was released, the price of Bitcoin dropped by nearly 4% from $48,000 to as low as $46,252 on Binance.

The price of Bitcoin began to recover when the news broke, rising from around $46,300 to above $47,300, by nearly iii%.

Morgan Stanley'due south Counterpoint Global considering Bitcoin as an investment is noteworthy because of two main reasons.

First, Morgan Stanley is a top financial institution in the U.Southward., and its influence in the banking sector is immense. 2nd, it comes after the depository financial institution boosted its holdings in MicroStrategy, which has accumulated over a billion dollars in Bitcoin to date.

Bloomberg reported that Counterpoint Global is "is exploring whether the cryptocurrency would exist a suitable option for its investors, according to people with knowledge of the affair."

The house would still need approving from relevant parties and regulators. Equally such, even if the depository financial institution's investment arm decides to invest in Bitcoin, it could still take a while for it to materialize.

The news comes simply a month afterward Morgan Stanley increased its stake in MicroStrategy to nigh 650,000 shares, equivalent to over 10% of the firm.

MicroStrategy, a publicly-listed business intelligence firm in the U.S., has moved the cryptocurrency market place by tempest subsequently its aggressive accumulation of BTC as its treasury asset. Its stock price has besides seen incredible growth over the past few months, which has even outperformed BTC.

MSTR vs. Bitcoin vs. NASDAQ performance. Source: Twitter/@Ecoinometrics

Since late 2020, MicroStrategy, led by its CEO Michael Saylor, accept been continuously investing in Bitcoin and leading seminars to assist other corporations to follow suit.

On Feb. 4, for instance, MicroStrategy conducted a seminar with ane,400 companies to talk over the "Bitcoin Corporate Strategy" and ways to gain exposure to BTC as a corporation.

The public perception of Bitcoin is improving

The combination of large institutional upper-case letter inflows into the Bitcoin market and the vocal support for cryptocurrencies from financial institutions is improving the public's perception of Bitcoin.

Every bit a result, banks and public corporations are facing pressure to either explain why they aren't investing in BTC or become on board.

Speaking to CNBC, JPMorgan co-president and COO Daniel Pinto said that the bank could support Bitcoin trading if it sees sufficient demand. He said:

"If over time an asset grade develops that is going to be used past unlike nugget managers and investors, we will accept to be involved. The demand isn't at that place yet, but I'm sure it will be at some bespeak."

More often than not, more financial institutions have begun to back up Bitcoin and the cryptocurrency sector, which benefits the overall infrastructure of the market.

Equally Cointelegraph reported, BNY Mellon is too planning to custody Bitcoin in the foreseeable future.