Last January 10th, 2024, the US Securities and Exchange Commission finally approved the Bitcoin ETF applications of 11 funds, including Fidelity, Grayscale, and Blackrock’s IBIT. Within a month, trading volume increased as more banks, funds, and individual traders got a share. One market participant that’s slowly boosting its holdings is Morgan Stanley.
In its recent 13F-HR/A filing with the SEC, Morgan Stanley declared $272 million worth of Bitcoin ETFs at the end of the third quarter. Although this seems like a sizeable investment, it only accounts for 2% of the total assets in management, now valued at $1.3 trillion.
Massive news! 🚨 Morgan Stanley, a $1.3 trillion asset manager, just disclosed $272 million in Bitcoin ETF holdings. This is a clear sign that institutional adoption is accelerating. As more major players like Morgan Stanley continue buying into Bitcoin, it’s creating… https://t.co/bkCt59bSrD
— Jimie (@Your_NLP_Coach) October 18, 2024
Morgan Stanley’s BTC Holdings Spread Over Blackrock, Ark21, Grayscale Funds
Morgan Stanley keeps its holdings in different baskets like a seasoned trader and investor. Many of its holdings are with Blackrock’s iShare Bitcoin Trust (IBIT). Management reported that it now owns 5.5 million shares of the BTC ETF, which it bought in the second quarter. Morgan Stanley’s holdings with Blackrock were worth $187.7 million at the time of the transaction but are now worth $209 million, or an increase of 10.2%.
The company also shared that it holds a sizable holding with Ark 21 Shares but has reduced its holdings with Grayscale. Initially, Morgan Stanley boasted holdings worth $270 million, but they’re now 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 significant holdings in the United States.
In August 2024, the company gave the go-signal to its managers to offer Bitcoin ETFs as an option for its wealthy customers. Considering its huge asset base, this was a significant move 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 Continue Push
The SEC’s approval of spot ETFs was a game-changer for the industry. According to analyst Kripto Mevsimi, Bitcoin is now a more mature asset and is starting to become an integral part of the financial market.
The market continues to support Bitcoin ETFs, with impressive net flows in the last four days. Funds bought over $470 million worth of BTC yesterday, an improvement from Wednesday’s inflow. Again, IBIT leads the game with an inflow of $309 million. Also, ARKB notched an impressive day with a $100.2 million inflow. GBTC was also positive, getting $45.7 million yesterday.
Featured image from MoneyControl, chart from TradingView