Bitrabo Editorial
On January 10, 2024, the US Securities and Exchange Commission approved Bitcoin ETF applications from 11 funds, including major names like Fidelity, Grayscale, and Blackrock’s IBIT. Since then, trading volumes have surged as banks, funds, and individual investors joined the market, with Morgan Stanley gradually increasing its Bitcoin holdings.
In a recent filing with the SEC, Morgan Stanley reported holding $272 million in Bitcoin ETFs by the end of Q3. Although this amount appears significant, it represents just 2% of the company’s total assets under management, which now stands at $1.3 trillion.
Big news!
Morgan Stanley, managing $1.3 trillion, has disclosed $272 million in Bitcoin ETF investments. This indicates fast-growing institutional interest. As large investors like Morgan Stanley continue to enter the Bitcoin market…
— Jimie (@Your_NLP_Coach) October 18, 2024
Diverse BTC Holdings Across Various Funds
Morgan Stanley manages its Bitcoin investments strategically, diversifying its holdings among different funds. A significant part of their investments is in Blackrock’s iShare Bitcoin Trust (IBIT), with 5.5 million shares purchased in Q2. The value of Morgan Stanley’s holdings in IBIT rose from $187.7 million at the time of purchase to $209 million now, marking a 10.2% increase.
The firm also holds a noteworthy amount in Ark 21 Shares but has scaled back its position in Grayscale, dropping from an initial $270 million to merely $148,000.
Morgan Stanley’s Support for Crypto Investments
Morgan Stanley ranks among the leading asset managers embracing Bitcoin and cryptocurrencies in its portfolio. While it was somewhat late to the Bitcoin ETF game, it has successfully built one of the largest crypto holdings in the US.
In August 2024, the company authorized its managers to offer Bitcoin ETFs to affluent clients. Given its substantial asset pool, this was a critical strategy shift. For instance, if just 1% of its assets were allocated to Bitcoin ETFs, it could result in an inflow of approximately $130 billion.
Encouraging Trends for Bitcoin ETFs
The SEC’s approval of spot ETFs has been pivotal for the crypto sector. Analyst Kripto Mevsimi notes that Bitcoin is evolving into a more established asset, becoming a key component in financial markets.
The market enthusiasm for Bitcoin ETFs is evident, with notable net inflows recorded over the past few days. Funds added over $470 million worth of BTC recently, a significant rise from previous inflows. Notably, IBIT led with $309 million, while ARKB also had a strong day with $100.2 million. GBTC experienced a positive trend as well, gaining $45.7 million.
Image courtesy of MoneyControl, data visualization from TradingView