The U.S. SEC filings released on Wednesday, August 25th, show that Morgan Stanley, the world’s third largest bank, increased its indirect exposure to Bitcoin by purchasing more than a million Grayscale Bitcoin Trust shares currently worth raised around $ 40 million.
A Twitter user named “Macroscope,” a financial analyst, was the first to do so note the Morgan Stanley holdings.
The SEC filings show that the bank owns huge amounts of Grayscale Bitcoin Trust shares in over 30 Morgan Stanley funds. The Morgan Stanley Insight Fund (a stock growth fund managing $ 8 billion in assets) is the largest portfolio with 928,051 Grayscale Bitcoin stocks valued at approximately $ 36 million. The bank also holds huge amounts of Grayscale Bitcoin (GBTC) in its Morgan Stanley Institutional Fund Inc, Morgan Stanley Institutional Trust, Morgan Stanley Variable Insurance Fund, and others.
Morgan Stanley bought GBTC shares in June when Bitcoin plunged its value to around $ 30,000 and GBTC shares fell to $ 30 each.
Grayscale Bitcoin Trust is an investment product for people who want to have exposure to Bitcoin in their portfolios but don’t want to hold or manage the physical Bitcoin. As such, GBTC tracks the price of Bitcoin. Those who invest in GBTC invest in Bitcoin indirectly as the product mirrors Bitcoin’s price development. GBTC is a US-based digital asset fund that has caught the attention of high profile investors like Cathie Wood.
To date, Morgan Stanley has purchased more than 6.5 million shares in the Grayscale Bitcoin Trust through several of its dozen funds. This makes the bank the second largest owner of GBTC after Cathie Woods ARK investment management firm owns over 9 million shares.
Invest in crypto firms
Morgan Stanley has been increasingly active in the crypto landscape in recent months to meet the growing demand from its customers. The US bank is increasingly interested in investing in companies with crypto interests.
Although the bank is direct investing in CryptocurrenciesLike buying Bitcoin itself, it has consistently invested huge amounts of money in crypto-related businesses.
In January, Morgan Stanley invested $ 500 million in MicroStrategy – the publicly traded company that holds the largest amounts of Bitcoin on balance sheets – to get more exposure to the digital asset.
In March, Morgan Stanley became the first US bank to give its customers access to Bitcoin funds. The bank has complied with its customers’ requests to offer such services, and the offering gives eligible customers access to three Bitcoin funds, including two funds from Galaxy Digital, a crypto firm run by bitcoin bull Mike Novogratz, and the other fund from a joint effort between bitcoin company NYDIG and asset manager FS Investments.
In June, Morgan Stanley announced that it had purchased 28,289 GBTC shares valued at $ 1.3 million through its Europe Opportunity Fund, although that was a relatively small investment compared to today’s filings.
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