Morgan Stanley is known as Wall Street’s mega investment bank. According to the United States Securities and Exchange Commission (SEC) filing, it has purchased 28,289 shares of Grayscale Bitcoin Trust (GBTC) through the European Opportunity Fund.
How does Morgan Stanley deal with cryptocurrencies?
The Morgan Stanley European Opportunity Fund is designed to generate maximum capital gains by investing in assets that “the investment team believes are undervalued at the time of purchase.” The fund allows the investment bank to invest in emerging and emerging companies in Europe. The fund invested in GBTC equates to 28,298 shares as of April 30, according to the filing with the SEC on June 28.
Morgan Stanley purchased a total of $828,000 worth of GBTC shares at a unit price of $29.25. According to the filing, the exposure was over $1.3 million at the end of April. This acquisition move indicates that the banking giant has increased its activities in the cryptocurrency market to meet the increasing demand from its customers.
Grayscale is by far the world’s largest crypto asset manager, with a total of $29 billion in assets under management.
Morgan Stanley has become more and more active in the cryptocurrency market in recent months to meet the growing demand of its clients. In March, the firm launched Bitcoin mutual fund products for high-income clients. He started hiring for cryptocurrencies and Blockchain analysts.
In April, the company allowed 12 of the funds to indirectly invest in Bitcoin through cash-settled futures contracts and Grayscale’s Bitcoin Trust. According to previous SEC filings, each fund can invest up to 25% of its assets in Bitcoin. The European Opportunity Fund includes European-based companies and other investments in technology and non-tech fields.
Earlier this month, Morgan Stanley made its first equity investment in blockchain, leading a $48 million Series B funding round for Securitize, a Coinbase-backed token platform.
This trend indicates that the company is increasing its investments and capacity in the cryptocurrency space. This report also points to evidence of wider institutional adoption of digital assets. It also indicates demand pressure on institutional investors from clients seeking exposure to the cryptocurrency market.