Morgan Stanley Holds Grayscale Shares

Highlights:

  • Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York.
  • Grayscale Bitcoin Trust is an investment product which provides exposure to Bitcoin through its fund’s shares.
  • As per a recent filing with the Securities and Exchange commission, various funds of Morgan Stanley hold approximately one million shares of the trust.

What is Morgan Stanley?

Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York. The firm has offices globally with over 60,000 employees and governments, institutions and big corporations as its clients. Morgan Stanley ranked no. 67 in the Fortune 500 company list in the United States.

The company through its subsidiaries and partners, advises, trades, manages and distributes capital for its clients. The Investment bank operates in three business segments namely Institutional securities, Wealth Management and finally Investment Management.

Morgan Stanley
Source: LinkedIn

What is the Grayscale Bitcoin Trust?

Grayscale Bitcoin Trust is an investment product which provides exposure to Bitcoin through its fund’s shares.

Investors can gain access to Bitcoin and other digital assets by buying the trust’s shares through their existing brokerage accounts.

The trust believes that digital assets such as Bitcoin will revolutionize the economic system of the world, country by country. The trust is changing the method of investing adopted by retailers and institutions.

Under this Bitcoin trust product, they have over $30.8 billion assets under management. The trust has delivered over 300% returns in 12 months and 31700% returns since its inception.

Grayscale Bitcoin trust
Source: Bitcoinik

What did Morgan Stanley’s filings reveal?

According to the documents filed with the Securities and Exchange commission, various funds and subsidiaries of Morgan Stanley hold approximately one million shares of the Grayscale Bitcoin trust. The SEC files showed that over 30 funds under Morgan Stanley’s umbrella hold shares of the Grayscale Bitcoin trust. Morgan Stanley’s Insight fund holds over 928,000 shares worth $36 million or 700 bitcoins according to the current market price.

Other funds such as the Morgan Stanley institutional fund, Morgan Stanley Institutional trust, Morgan Stanley Variable Insurance fund and many such funds hold the Trust’s shares in their balance sheet.

The four funds under the bank’s umbrella bought over 6,450,000 shares of the Grayscale Bitcoin trust. The total number of shares were worth over $250 million. The filings with the SEC were dated before June 30. This suggests that the investment bank had invested in Bitcoin when the coin’s value was near $30,000. If this holds true, Morgan Stanley has already gained over 65% off of their investments.

The investment bank has been a big supporter of the largest cryptocurrency in the world. It was one of the first banks to offer futures products to its high net-worth clients. With the revelation of its holdings of the Grayscale fund, it is clear that the investment bank believes in the future of Bitcoin among other cryptocurrencies.

It is also assumed that along with Morgan, other big banks such as Goldman Sachs, Wells Fargo, Bank of America and JP Morgan Chase have made such investments. Rumors were also floated that the CitiGroup was being pressured by their high-profile clients to offer them access to this asset class.

The day is not far when cryptocurrencies replace fiat forever and for good!

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