Bitcoin demand at all-time highs as Wall Street is under pressure to offer exposure to crypto


  • Bitcoin price action has made institutions turn heads, increasing the cryptocurrency demand as its supply continues to diminish.
  • A major private bank offers BTC exposure after an influx of client demand but warns of the suitability of those with "high-risk tolerance."
  • A Hong Kong-listed firm scoops up $90 million in Bitcoin and Ether, expecting ample room for appreciation in value.

Bitcoin has seen a meteoric rise in 2021; with the new asset class's exploding price action, institutions have increasingly embraced digital currencies. Cryptocurrencies are moving towards the mainstream where major companies, including MicroStrategy, Square, PayPal, and Tesla — to name a few, are confident in the future. 

Wall Street under pressure to offer exposure to Bitcoin

Morgan Stanley has recently become the first big US bank to offer its clients access to three funds that enable Bitcoin ownership. 

According to CNBC, this move was made after the firm's clients requested exposure to the digital currency, which has put prestigious banks under pressure to get involved in the new asset class.

With $4 trillion in client assets worldwide under Morgan Stanley's wealth management arm, the private bank emphasized that the exposure to Bitcoin is only suitable for those with "aggressive risk tolerance" and with at least $2 million in assets held by the firm. Morgan Stanley also limits investments to 2.5% of the client's total net worth. 

Bitcoin's popularity seems to have hit a pivotal point after Tesla CEO Elon Musk revealed adding this cryptocurrency to its balance sheet. With Morgan Stanley now joining the BTC craze, it poses the question of whether other institutions and blue-chip companies will follow suit while retail investors replicate their actions. 

The CME Group suggested that Bitcoin futures open interest grew by over 100% over the past eight months. CME futures represents a part of institutional interest in cryptocurrencies and derivative products. The firm expects that this new asset class's demand will stay at the same levels or grow even more. 

Chinese tech giant stockpiles $90 million worth of crypto

While the major bank in the US is just now carefully dipping its toes in the cryptocurrency industry, Chinese tech giant Meitu announced that the firm purchased an additional 386 Bitcoin and 16,000 Ether, worth approximately over $50 million, taking its net spend on digital assets to approximately $90 million so far. 

The Xiamen-headquartered company initially purchased 15,000 ETH for roughly $22.1 million and 379 BTC for around $17.9 million on March 5. 

With the firm's Cryptocurrency Investment Plan's main goal to reach a net purchase value of a minimum of $100 million in cryptos, the additional purchase was made through its subsidiary, Miracle Vision. 

The company's board members emphasized that cryptocurrencies have "ample room for appreciation in value" and that allocating part of its treasury into the new asset class could be better stores of value than cash. 

The world's largest cryptocurrency reached a high of $61,000 on March 14 but has erased some of its gains in the days that followed. Although Bitcoin has lost support at $58,000, BTC has held steady at above $55,000 and is trading at $59,069 at the time of writing. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?  

More Litecoin News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.

More Bitcoin News
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

More Cryptocurrencies News
Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.

More Bitcoin News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP