On January 10, 2024, the US Securities and Exchange Commission finally approved the Bitcoin ETF applications of 11 funds, including Fidelity, Grayscale, and Blackrock’s IBIT. During the month, the trading volume increases as more banks, funds, and individual traders get a share. One of the market participants that is gradually increasing its holding is Morgan Stanley.
In its latest 13F-HR/A filing with the SEC, Morgan Stanley announced $272 million worth of Bitcoin ETFs at the end of the third quarter. While this appears to be a large investment, it accounts for only 2% of total assets under management, now estimated at $1.3 trillion.
Great news! 🚨 Morgan Stanley, the $1.3 trillion asset manager, recently revealed $272 million in Bitcoin ETF holdings. This is a clear sign that institutional adoption is accelerating. As major players like Morgan Stanley continue to buy into Bitcoin, it has long been…
— Jimie (@Your_NLP_Coach) October 18, 2024
Morgan Stanley’s BTC Holdings Spread Over Blackrock, Ark21, Grayscale Funds
Morgan Stanley keeps its assets in different baskets as a seasoned trader and investor. Most of the holdings have Blackrock’s iShare Bitcoin Trust (IBIT). The management reported that they now own 5.5 million shares of the BTC ETF, which they bought in the second quarter. Morgan Stanley and Blackrock’s assets were worth $187.7 million at the time of the transaction but are now worth $209 million, or up 10.2%.
The company also shared that it held a large stake in Ark 21 Shares but reduced its holding in Greyscale. At first, Morgan Stanley boasted holdings worth $270 million, but now it’s down to $148,000.
BTCUSD trading at $68,393 on the daily chart: TradingView.com
Morgan Stanley And Its Crypto-Friendly Strategy
Morgan Stanley is one of the top asset managers with a Bitcoin and crypto-friendly strategy. Although the company was late in investing in Bitcoin ETFs, it still managed to build one of the most important locations in the United States.
In August 2024, the company gave its management a signal to offer a Bitcoin ETF as an option for its wealthy clients. Considering its large asset base, this was a significant step for the company. For example, if its manager allocates just 1% of the company’s assets to Bitcoin ETFs, it will create an inflow of 130 billion.
Bitcoin ETFs Keep Pushing
The SEC approval of spot ETFs was a game changer for the industry. According to analyst Kripto Mevsimi, Bitcoin is now a mature asset and is starting to become an important part of the financial market.
The market continues to support Bitcoin ETFs, with impressive net flows over the past four days. Funds bought over $470 million in BTC yesterday, an improvement from Wednesday’s inflow. Also, IBIT leads the game with $309 million in revenue. Also, ARKB saw a good day with $100.2 million inflows. GBTC was also good, gaining $45.7 million yesterday.
Featured image from MoneyControl, chart from TradingView