Morgan Stanley, one of the top banking firms in the United States, has disclosed its investment of $269 million in spot Bitcoin Exchange Traded Funds (ETFs), according to recent filings. This move signals the bank’s entry into the realm of cryptocurrency investment, following the footsteps of other major US banks.
The investment was made in Grayscale’s GBTC during the first quarter of 2024, as revealed in a filing with the Securities and Exchange Commission (SEC). With this investment, Morgan Stanley becomes one of the top holders of Grayscale Bitcoin Trust ETF (GBTC), ranking second only to Susquehanna International Group, which has invested a substantial $1.0 billion in GBTC.
The growing trend of institutional investment in spot Bitcoin ETFs reflects a significant increase in professional ownership of cryptocurrency assets. Approximately 700 professional firms have invested nearly $5 billion in spot Bitcoin ETFs by the May 15 deadline, according to Bitwise CIO Matt Hougan. This surge in institutional interest is reminiscent of the successful launch of gold ETFs back in 2004.
Other traditional financial firms have also shown interest in purchasing spot Bitcoin ETFs, including hedge fund managers and financial advisory firms. Pine Ridge Advisers, Aristeia Capital LLC, Graham Capital Management, Crcm LP, Boothbay Fund Management, and Fortress Investment Group LLC are among the notable firms that have disclosed significant investments in various spot Bitcoin ETFs, further highlighting the growing institutional presence in the crypto space.
Source: Cryptopotato