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Morgan Stanley is one example of traditional banks that have completely changed their stance on the crypto industry. A harsh critic until recently, the bank is now doing everything in its power to diversify its crypto portfolio. The one example is its investment worth millions of dollars in various funds, with the most recent one being Grayscale’s Bitcoin Trust.
Previously, Morgan Stanley reported owning 28.289 shares of Grayscale’s Bitcoin Trust. Immediately after this information became known, MacroScope said that the bank will soon increase its position, and this prediction finally became reality.
In SEC filings, Morgan Stanley has just reported owning a large amount of Grayscale Bitcoin across multiple portfolios.
— MacroScope (@MacroScope17) August 25, 2021
The largest of these appears to be 928,051 shares held by Morgan's Insight Fund.
These are major disclosures.
Link to all filings:https://t.co/Vi4iiBa5J5 pic.twitter.com/FZfU8qS0TX
Morgan Stanley increases its crypto investments
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The revelation of Morgan Stanley’s Funds investing in BTC actually came from the recent SEC filings. The filings revealed that Morgan Stanley’s Insight Fund, Institutional Fund Inc., Variable Insurance Fund Inc., and even the Institutional Fund Trust have invested in Grayscale’s Trust.
Since these are all investments into Grayscale’s Bitcoin Trust, they are considered indirect investments, since Morgan Stanley did not actually buy any coins. Even so, they are very much noteworthy, with the biggest investment coming from the Morgan Stanley Insight Fund. The Fun previously held 928,051 of the Trust’s shares. The amount was equal to $27.6 million.
According to what is known, the bank’s funds are only allowed to have a maximum allocation of 25% in crypto.
Bitcoin adoption progresses as doubts are being swept away
Previously, Morgan Stanley also started offering support for BTC investments to its wealthier clients earlier this year. And, considering that the US is still as far as getting a Bitcoin ETF as it can be, investing in Grayscale’s Bitcoin Trust is likely the best alternative for the moment.
It is also worth noting that Morgan Stanley is not the only bank that has had a change of heart in regard to cryptocurrencies. Influential financial institutions like JPMorgan, BNY Mellon, and Goldman Sachs have all moved into the crypto space recently, as the doubts regarding Bitcoin continue to clear up, and adoption continues to progress.