- Morgan Stanley now ranks among the top five holders of BlackRock’s Bitcoin ETF, owning 5.5 million shares worth $188 million.
- The firm has allocated all 5.5 million Bitcoin ETF shares to Morgan Stanley Investment Management, expanding its cryptocurrency exposure.
- Investor demand for Bitcoin ETFs is rising, with Morgan Stanley leading the charge, while other major banks remain cautious.
Morgan Stanley has recently disclosed owning 5.5 million shares in BlackRock’s iShares Bitcoin Trust (IBIT). This positions Morgan Stanley as one of the top five holders of BlackRock’s Bitcoin ETF.
The details emerged in a filing with the U.S. Securities and Exchange Commission (SEC) on August 14, revealing that the shares were valued at approximately $188 million as of June 30, 2024. The investment signals a growing interest in Bitcoin ETFs among major financial institutions.
Morgan Stanley’s Strategic Move into Bitcoin ETFs
Notably, the filing highlighted that the 5.5 million shares are allocated to Morgan Stanley Investment Management Inc. This strategic allocation reflects the firm’s broader approach to integrating Bitcoin into its investment portfolio.
As of early August, Morgan Stanley advisors have begun offering spot Bitcoin ETFs to select clients, allowing them to gain exposure to both BlackRock’s iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund (FBTC). This move highlights Morgan Stanley’s growing engagement with Bitcoin, despite the cautious stance other major U.S. banks continue to maintain.
Growing Investor Demand for Bitcoin
Investor demand for Bitcoin has been on the rise, leading to increased interest from financial institutions. However, not all banks have embraced this trend. Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo currently prohibit their advisors from promoting Bitcoin ETFs.
Despite this, the momentum behind Bitcoin ETFs appears to be building, with Morgan Stanley leading the charge among traditional financial firms. This growing demand may potentially influence other banks to reconsider their stance on Bitcoin-related investments.
Morgan Stanley’s Broader Cryptocurrency Exposure
Beyond its stake in the iShares Bitcoin Trust, Morgan Stanley’s filing also revealed smaller investments in other cryptocurrency-related funds. These include shares in a Valkyrie ETF Trust with exposure to Bitcoin and Ether, as well as investments in Bitwise’s Bitcoin ETF, Invesco Galaxy Bitcoin ETF, and Proshares Bitcoin Strategy ETF. This diversified approach indicates Morgan Stanley’s broader interest in the crypto market.
Morgan Stanley’s holdings in Bitcoin ETFs and broader cryptocurrency investments mark a notable shift in the financial sector’s approach to digital assets. The firm’s growing involvement reflects a response to the increasing demand for Bitcoin exposure.
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