According to a recent filing with the US Securities and Exchange Commission (SEC), Morgan Stanley, an American global investment bank and financial services firm, has been liberally investing in the Grayscale Bitcoin Trust (GBTC).
To satisfy its growing demand for cryptocurrency, the Wall Street titan chose a “conventional investment vehicle” that allows investors to acquire exposure to the Bitcoin (BTC) price movement.
A significant disclosure
The banking giant reported its exposure to Bitcoin via the GBTC, America’s favorite institutional, regulated product offered by Grayscale Investments that holds a fraction of the world’s largest crypto per publicly traded share, allowing investors to enter the market in a safer, more traditional manner, according to the August 25 filing with the SEC.
Popular market analyst MacroScope broke the story on Twitter, citing the SEC filing, indicating that the Wall Street giant recently acknowledged owning a huge quantity of Grayscale Bitcoin across different portfolios, with Morgan’s Insight Fund holding the most shares.
In SEC filings, Morgan Stanley has just reported owning a large amount of Grayscale Bitcoin across multiple portfolios.The largest of these appears to be 928,051 shares held by Morgan’s Insight Fund.These are major disclosures.Link to all filings:https://t.co/Vi4iiBa5J5 pic.twitter.com/FZfU8qS0TX— MacroScope (@MacroScope17) August 25, 2021
Morgan’s Insight Fund has 928,051 shares in it and is exposed to over 870 Bitcoin, totaling $36,1 million in GBTC shares.
Cryptocurrency exposure and money
Morgan Stanley added Bitcoin exposure to its various products earlier this year through cash-settled futures and the GBTC.
According to the Grayscale website, each GBTC share now holds 0.000937863 Bitcoin, which amounts to slightly more than $44 at the press time price of the cryptocurrency, but the share itself trades for slightly more than $39, suggesting a significant premium.
Last month, the largest crypto asset management firm announced the establishment of a new DeFi Fund, expanding its investing service tentacles into the decentralized finance (DeFi) sector.
Grayscale’s second-ever diversified investment product, UniSwap, Aave, and Compound, will allow investors to invest in DeFi protocols such as UniSwap, Aave, and Compound.
Meanwhile, a recent CoinShares report highlighted last week’s fund flows, and according to the digital asset investment firm, the warmed-up investor sentiment favors alts over Bitcoin, which witnessed $2.8 million in withdrawals for the seventh week in a row.
“Flows among product providers remained uneven, with some continuing to show outflows for the week while others in both North America and Europe posted inflows,” according to the study, which indicated Grayscale had a zero for the week ending August 23.