While the appetite for crypto amongst institutional investors is on the rise, some banks are still taking a more cautious approach. One such bank is HSBC. HSBC has announced that it has banned its customers from buying shares in tech company Microstrategy. This is after Microstrategy’s recent aggressive buying of Bitcoin. The bank has stated that it does not want to have any direct exposure to cryptocurrencies or products that get their value from cryptocurrencies.
This announcement was in confirmation of a social media report of the same last week. The message claimed that HSBC had directed clients not to buy any more shares of Microstrategy. However, the bank announced that those already holding shares could continue, and they can even transfer them.
Microstrategy has been quite aggressive in buying Bitcoin, and so far, has a holding of more than $5.5 billion. The company is going to the extent of paying employees in Bitcoin. It recently announced that it would be paying non-employee directors in Bitcoin.
It is not clear the direction that HSBC is likely to take going into the future on crypto, considering the market dynamics. Other bankers such as Goldman Sachs have been quite receptive to Bitcoin. Similarly, many big corporations like Tesla and Square are betting on crypto. Considering that the bank has these restrictions since 2018, the bank seems entirely consistent in its policies. If any change comes, it would likely be out of competitive pressure.
