Morgan Stanley has more than 6.5 million Grayscale Bitcoin shares worth more than $300 million across three of its funds.
Despite the ongoing price volatility of Bitcoin, which has seen the commodity climb to over $68,000 and then plummet to roughly $57,000 in the last 30 days, institutional investors’ enthusiasm for the flagship digital currency has not waned.
Morgan Stanley, a renowned investment bank in the United States, is one such investor, having lately increased its exposure to the asset class by purchasing more Grayscale Bitcoin Trust shares.
Morgan Stanley ups BTC exposure
The investment bank’s Insight Fund increased its holdings in Grayscale Bitcoin Trust shares by more than 63% during the second quarter of this year, according to a filing with the US Securities and Exchange Commission (SEC) on Tuesday.
As per the statement, the bank initially had 928,051 GBTC shares but increased to 1,520,549 as of Sept. 30.
When compared to the third quarter’s GBTC Growth Portfolio, the filings show a 71% rise. In addition, Morgan Stanley Global Opportunity Portfolio increased by 59% in three months, from 919,805 to 1,463,714 shares.
Over 6.5 million GBTC shares are held by the bank across three of its biggest funds, with a total value of $303 million. As of press time, GBTC’s stock was trading for roughly $46.
Formation of a crypto research
Morgan Stanley can obtain indirect exposure to Bitcoin through these portfolios and funds. The Morgan Stanley Europe Opportunity Fund has approximately 58,000 shares of GBTC, as reported in September.
The fund, however, does not appear to be one of those that have recently boosted its exposure to the crypto king.
Aside from its GBTC investment, the corporation has announced the formation of a crypto-research department to investigate how the company may profit from the “increasing relevance of cryptocurrencies and other digital assets in global markets.”
Sheena Shah, the bank’s chief crypto strategist, has suggested that the bank, like its competitors, maybe aiming to profit from the growing demand for stablecoin deposits.
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