CNBC reported on the 17th (local time) that Morgan Stanley, a global investment bank (IB), has decided to allow investment in bitcoin funds for clients in the asset management sector. Morgan Stanley is the first major US bank to allow Bitcoin investment.
According to CNBC, Morgan Stanley notified the policy to an employee in charge of private banking (PB) sales. The investment targets are two funds operated by Galaxy Digital, a cryptocurrency (virtual currency) company, and one fund jointly operated by FS Investments, an asset management company, and NYDIG, a bitcoin company. Morgan Stanley is expected to start the service as early as next month.
However, investment opportunities are only given to high-value asset owners who can afford to withstand the high volatility of Bitcoin. Individuals must have at least $2 million in consignment assets with an’aggressive investment propensity’. Companies must maintain a balance of over $5 million. They can invest in Bitcoin within 2.5% of their net worth.
An official from Morgan Stanley explained, “It is in response to customer demand to increase the exposure to cryptocurrency (risk exposure),” and “a significant step toward accepting bitcoin as an asset”.
Unlike Morgan Stanley, Wall Street’s major investment banks such as Goldman Sachs, JP Morgan, and Bank of America (BofA) do not allow asset management clients to invest in bitcoin. BofA released a report titled’Bitcoin’s Little Dirty Secret’ on the same day, claiming that “Bitcoin is purely a speculative asset.”
It is pointed out that it is inappropriate to incorporate into the portfolio as 2.4% of all Bitcoin accounts hold 95% of Bitcoin. BofA also refuted that bitcoin advocates claim that bitcoin will play a role in hedge inflation, saying that “stocks are more correlated with inflation than bitcoin.”
“The claim that bitcoin should be included in the portfolio is purely aimed at a price increase,” said Francisco Blanche, a strategist in charge of products and derivatives at BofA. Expected.
Reporter Park Sang-yong [email protected]
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