Last January 10, 2024, the U.S. Securities and Exchange Commission finally approved Bitcoin ETF applications for 11 funds, including Fidelity, Grayscale, and BlackRock's IBIT. Within a month, trading volumes increased as more banks, funds and retail traders acquired shares. One market participant that has been slowly increasing its holdings is Morgan Stanley.
In its recent 13F-HR/A filing with the SEC, Morgan Stanley declared that it held $272 million worth of Bitcoin ETFs at the end of the third quarter. While this seems like a significant investment, it is only 2% of total assets under management, currently valued at $1.3 trillion.
Big news! 🚨 Morgan Stanley, the $1.3 trillion asset management company, has disclosed its $272 million Bitcoin ETF holdings. This is a clear sign that institutional adoption is accelerating. As major companies like Morgan Stanley continue to buy into Bitcoin, Bitcoin… https://t.co/bkCt59bSrD
— Jimmy (@Your_NLP_Coach) October 18, 2024
Morgan Stanley's BTC holdings are spread across BlackRock, Ark21, and Grayscale funds
Morgan Stanley, like any seasoned trader or investor, stores its holdings in various baskets. Most of its holdings are in BlackRock's iShare Bitcoin Trust (IBIT). Management reported that it currently owns 5.5 million shares of the BTC ETF purchased during the second quarter. Morgan Stanley's holdings in BlackRock were worth $187.7 million at the time of the transaction and are now worth $209 million, an increase of 10.2%.
The company also shared that while it holds a large stake in Ark21, it has reduced its stake in Grayscale. Morgan Stanley originally boasted assets worth $270 million, but that has now fallen 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 Bitcoin and crypto-friendly strategies. Although the company was late to investing in Bitcoin ETFs, it still managed to build one of the most significant holdings in the US.
In August 2024, the company gave management the green light to offer Bitcoin ETFs as an option for high-net-worth clients. This was an important move for the company considering its huge asset base. For example, if the company's management allocated just 1% of the company's assets to Bitcoin ETFs, it would generate $130 billion in inflows.
Bitcoin ETFs continue to push
The SEC's approval of spot ETFs was a game-changer for the industry. According to analyst Krypto Mebusimi, Bitcoin is now a more mature asset and is starting to become an integral part of financial markets.
The market continues to support Bitcoin ETFs, with net flows over the past four days impressive. Yesterday, the fund purchased $470 million worth of BTC, an improvement from Wednesday's inflows. Once again, IBIT leads the way with $309 million in inflows. ARKB also had an impressive day with $100 million in inflows. GBTC was also positive, gaining $45.7 million yesterday.
Featured image from MoneyControl, chart from TradingView
