In new filings with US Securities and Exchange Commission (SEC), major US investment bank Morgan Stanley has increased its exposure to Bitcoin by purchasing shares of Grayscale Bitcoin Trust.
By June 2021, Morgan Stanley reportedly owned more than 3.9 million GBTC shares held in different funds. However, the latest report for Q3 financial data shows the wealth management fund has increased its holdings to 6.5 million shares worth around $300million by today’s rates.
All three Morgan Stanley funds have increased their exposure to Bitcoin in the financial period ending September 30th. The Growth portfolio fund added 1.5 million shares while the Insight fund added almost 600,000 GBTC shares. The other investment funds of investment manager like the Global Opportunity Fund also increased their share capital on BTC.
By massively increasing its exposure to BTC, Morgan Stanley is showing it’s becoming more comfortable with digital currencies in its portfolios.
Even though the wealth manager’s SEC filings were first reported on Twitter by Maroscope, the firm has been vocal about its willingness to embrace Bitcoin.
Morgan Stanley CEO James Gorman is one of the leading financial experts who have been supporting Bitcoin and other crypto investments. He claimed in October that he didn’t think “crypto is a fad.”
With such comments, it highlights the cryptocurrency knowledge Gorman and Morgan Stanley have developed, and their willingness to expose their clients to more digital currency investments. This should not come as a surprise, as they were the first big US bank to offer its clients access to Bitcoin funds.
So far, the bank is yet to officially report its additional investments in Bitcoin. However, from different market performances of crypto and traditional assets, it’s clear why they would be embracing cryptos. Even though the global market has been open for some time following the Coronavirus pandemic, the economy is yet to pick up.
The traditional economy is still struggling with inflation following some government control measures such as printing more money during the pandemic. Bitcoin has since become the ideal hedge against inflation and an alternative investment option.
More firms embracing Bitcoin investments
Morgan Stanley is not the only investment firm investing in Bitcoin and crypto-assets. Several other institutional firms are already coming on board with digital currencies becoming an inevitable and viable investment opportunity.
Fixed asset management firm PIMCO, is one global firm that is open to purchasing more crypto. There are also suggestions that Apple will include Bitcoin payments on its platforms following the revelation that its CEO, Tim Cook owns Bitcoin.
Other than the struggling traditional economy, more banks and institutional investors are investing in cryptos due to increased safety. The lack of regulations made them shy away from digital currencies previously. However, following the launch of regulated assets like Exchange Traded Funds (ETFs), the funds have become more secure.
Grayscale Bitcoin Trust is one of the most reputable platforms that allow institutional investors like Morgan Stanley and high-net-worth investors safer exposure to Bitcoin.