Morgan Stanley, the sixth largest banking firm in the United States, recently disclosed its $269 million investment in spot Bitcoin Exchange Traded Funds (ETFs) in a filing, aligning with other major US banks delving into cryptocurrency investment.
The Securities and Exchange Commission (SEC) filing indicated the investment was made in Grayscale’s GBTC during the first quarter of 2024. As per CryptoPotato, Morgan Stanley’s recent investment announcement positions it as one of the prominent holders of Grayscale Bitcoin Trust ETF (GBTC), a type of Spot Bitcoin ETF comparable to Blackrock’s ETF.
Morgan Stanley, with its substantial investment in GBTC, ranks second to Susquehanna International Group, which holds a significant $1.0 billion investment in GBTC. Bitwise CIO Matt Hougan mentioned that around 700 professional firms had invested nearly $5 billion in spot Bitcoin ETFs by the May 15 deadline. Hougan noted this increasing trend as a historic level of professional ownership, drawing parallels to the successful launch of gold ETF back in 2004.
Various traditional financial firms, including hedge fund managers and financial advisory firms, have shown interest in acquiring spot Bitcoin ETFs, reflecting the rising institutional interest in crypto assets.
On May 14, New York advisory firm Pine Ridge Advisers unveiled a $205.8 million investment in spot Bitcoin ETFs, divided among various funds such as BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC), and Bitwise’s Bitwise Bitcoin ETF (BITB). Furthermore, alternative asset manager Aristeia Capital LLC disclosed a notable $163.4 million investment in IBIT on May 15.
Similarly, Connecticut-based investment firm Graham Capital Management shared investments totalling $98.8 million in IBIT and $3.8 million in FBTC. Hedge fund manager Crcm LP also revealed a $96.6 million investment in IBIT. New York-based hedge fund manager Boothbay Fund Management disclosed a significant $377 million exposure to spot Bitcoin ETFs, encompassing investments in various funds like IBIT, FBTC, GBTC, and BITB.
Additionally, New York investment manager Fortress Investment Group LLC unveiled a $53.6 million investment in IBIT, further expanding the roster of institutional players venturing into the crypto domain.