Morgan Stanley Reveals $269m Investment in Spot Bitcoin ETFs

Morgan Stanley, the sixth-largest banking firm in the United States, has disclosed a $269 million investment in spot Bitcoin Exchange Traded Funds (ETFs), highlighting the increasing institutional interest in cryptocurrency. This information was revealed in a recent Securities and Exchange Commission (SEC) filing, showing that the investment was made in Grayscale’s Bitcoin Trust (GBTC) during the first quarter of 2024.

According to CryptoPotato, Morgan Stanley’s significant investment positions it as one of the top holders of the Grayscale Bitcoin Trust ETF, similar to BlackRock’s spot Bitcoin ETF. With this move, Morgan Stanley becomes the second-largest investor in GBTC, following Susquehanna International Group, which holds a $1.0 billion investment.

Bitwise CIO Matt Hougan noted that around 700 professional firms have invested nearly $5 billion in spot Bitcoin ETFs by the May 15 deadline, describing this trend as historic and comparable to the successful launch of gold ETFs in 2004.

Several traditional financial firms have also shown significant interest in spot Bitcoin ETFs. On May 14, New York advisory firm Pine Ridge Advisers disclosed a $205.8 million investment in various spot Bitcoin ETFs, including $83.2 million in BlackRock’s iShares Bitcoin Trust (IBIT), $93.4 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC), and $29.3 million in Bitwise’s Bitcoin ETF (BITB).

Additionally, alternative asset manager Aristeia Capital LLC reported a $163.4 million investment in IBIT, while Connecticut-based Graham Capital Management disclosed $98.8 million in IBIT and $3.8 million in FBTC. Hedge fund manager Crcm LP revealed a $96.6 million investment in IBIT.

Boothbay Fund Management, a New York-based hedge fund manager, disclosed a $377 million exposure to spot Bitcoin ETFs, including $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB. Fortress Investment Group LLC also reported a $53.6 million investment in IBIT.

These investments by prominent financial firms reflect the growing confidence and interest in cryptocurrency as a viable asset class.