Morgan Stanley boosts Bitcoin holdings on a large scale

The crypto trend has now also officially reached the big banks. Morgan Stanley CEO James Gorman has expressed optimism for Bitcoin & Co and said that his financial institution had increased its BTC holdings significantly.

When Bitcoin made its market debut in 2009, mainly big banks eyed the newcomer to the asset market with suspicion. After all, the decentralised cyber currency was created in the first place to provide an independent alternative to big banks. In the meantime, however, most lending institutions have realised that the crypto trend is not likely to evaporate too quickly. 

This is also the case with the US bank Morgan Stanley: as recently as October, CEO James Gorman stated, according to Bloomberg, that he did not consider cryptocurrencies to be a fad. “I don’t know what the value or price of Bitcoin should or shouldn’t be. But these things are not going to go away, and the blockchain technology that supports them is obviously genuine and powerful,” the news agency quoted the corporate executive as saying.

Morgan Stanley repurchases Grayscale shares

The fact that the financier believes in the crypto trend is also shown by company documents available to the US Securities and Exchange Commission. For example, Morgan Stanley significantly increased its holdings in the Grayscale Bitcoin Trust in the last quarter. The trust, which trades under the ticker “GBTC”, has a security status, which allows investors to participate in the Bitcoin trend without needing a wallet to store the shares. Only recently, the Bitcoin trust exceeded the 500,000 Bitcoins mark.

Several crypto funds in focus

The US big bank now expanded its exposure to the crypto product through several of its investment funds, as Twitter user MacroScope also revealed. While the Morgan Stanley Growth Portfolio, which is designed for long-term investments, still comprised 2,130,153 shares of the Grayscale trust at the end of June, 3,642,118 securities were on the books as of 30 September. The experts also increased their holdings in the Insight Fund and the Global Opportunity Fund from 928,051 to 1,520,549 units and 919,805 to 1,463,714 units. GBTC securities were also bought for other Morgan Stanley funds. With this vote of confidence, Morgan Stanley is showing that CEO Gorman’s statements also impact the bank’s actual business.

Conversion into BTC ETF planned

It is not only the large credit institutions that have now recognised the advantages of cryptocurrencies for themselves. Even the SEC itself, whose head Gary Gensler repeatedly criticised the business with digital assets in the past, recently showed itself unusually open to the crypto trend and paved the way for Bitcoin ETFs. Grayscale is also aiming to convert its trust into an exchange-traded fund to maintain its supremacy on the crypto market, as “MarketWatch” reported.

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