On January 10, 2024, the U.S. Securities and Exchange Commission gave final approval to Bitcoin ETF applications for 11 funds, including Fidelity, Grayscale and Blackrock’s IBIT. During the month, trading volume increased as more banks, funds and individual investors received shares. One of the market participants that is slowly increasing its involvement is Morgan Stanley.
In his recent Application 13F-HR/A together with the SEC, Morgan Stanley declared $272 million worth of Bitcoin ETFs at the end of the third quarter. While this seems like a significant investment, it represents only 2% of total management assets, which are currently valued at $1.3 trillion.
Huge news! 🚨 Morgan Stanley, a $1.3 trillion asset manager, just disclosed $272 million in Bitcoin ETF holdings. This is a clear signal that institutional adoption is accelerating. As more and more major players like Morgan Stanley continue to buy Bitcoin, it is creating… https://t.co/bkCt59bSrD
— Jim (@Twój_NLP_Coach) October 18, 2024
Morgan Stanley’s BTC holdings are spread across Blackrock, Ark21 and Grayscale funds
Morgan Stanley holds its shares in various baskets like an experienced trader and investor. Many of its shares are owned by Blackrock iShare Bitcoin Trust (IBIT). The management board announced that it currently holds 5.5 million shares of the BTC ETF fund, which it purchased in the second quarter. At the time of the transaction, Morgan Stanley’s stake in Blackrock was worth $187.7 million, but is now worth $209 million, an escalate of 10.2%.
The company also said it had a significant stake in Ark 21 Shares but reduced its stake in Grayscale. Initially, Morgan Stanley He boasted a net worth of $270 million, now down to $148,000.
BTCUSD trading at $68,393 on the daily chart: TradingView.com
Morgan Stanley and its cryptocurrency-friendly strategy
Morgan Stanley is one of the top asset managers with a Bitcoin and cryptocurrency-friendly strategy. Although the company was overdue with the investment Bitcoin ETFsHowever, he managed to build one of the most essential holdings in the United States.
In August 2024, the company gave managers the signal to submit an offer Bitcoin ETFs as an option for wealthy clients. Given its huge asset base, this was a significant move for the company. For example, if his manager allocates just 1% of the company’s assets to Bitcoin ETFs, it would result in an inflow of $130 billion.
Bitcoin ETFs continue to push
The SEC’s approval of spot ETFs has been a game-changer for the industry. According to analyst Kripto Mevsimi, Bitcoin is now a more mature asset and is starting to become an integral part of the financial market.
The market continues to support Bitcoin ETFs, recording impressive net flows over the last four days. Funds bought over $470 million worth of BTC yesterday, an improvement over Wednesday’s inflow. Once again, IBIT leads the game with an inflow of $309 million. ARKB also had an impressive day with $100.2 million inflows. GBTC was also positive, reaching $45.7 million yesterday.
Featured image from MoneyControl, chart from TradingView
