Morgan Stanley Builds Its Bitcoin Exposure with Grayscale Bitcoin Trust

Azeez Mustapha
26 August 2021 | Updated: 26 August 2021

Behemoth American-headquartered bank Morgan Stanley has remained steadfast in gaining Bitcoin exposure by investing millions of dollars, despite the recent prevalent bearish bias amongst analysts.

Twitter analyst MacroScope cited the significant difference between the financial institution’s previous filing and today’s data, noting that the bank’s crypto exposure has grown significantly within a few months.

MacroScope predicted that Morgan Stanley would seek more crypto exposure back when it held only 28.289 shares in the Grayscale Bitcoin Trust (GBTC).

Based on recent US SEC filings, the Morgan Stanley Insight Fund, the Morgan Stanley Institutional Fund Inc, the Morgan Stanley Variable Insurance Fund Inc., and the Morgan Stanley Institutional Fund Trust have all carried out direct Bitcoin investments.

Indirect investment refers to those that offer exposure to an investment product that tracks the performance of another. With Morgan Stanley, most of its cryptos investments are in shares of the Grayscale Bitcoin Trust.

Morgan Stanley has Room for More Bitcoin and Cryptocurrency Investment

The highest cryptocurrency investment held by the company comes from the Morgan Stanley Insight Fund, which boasts 928,051 shares of the GBTC worth about $27.6 million. However, while this is a substantial cryptocurrency investment by any metric, the undertaking accounts for just 0.34% of the fund’s total assets.

Recent reports show that Morgan Stanley’s funds can facilitate a maximum allocation of 25% of its total assets in crypto.

The race to attract the most crypto-inclined investors by banks and financial institutions intensified in 2021, following the 2020/2021 bull run. Giant institutional investors like JP Morgan, Goldman Sachs, BNY Mellon, and others have begun offering direct and indirect crypto investments and analyses to interested clients.

As such, doubts that previously shrouded Bitcoin appear to be clearing up as even sovereign nations take steps to integrate Bitcoin and cryptocurrency into their financial infrastructure.

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.