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Intro: U.S. megabank Morgan Stanley has purchased a good amount of shares of the Grayscale Bitcoin Trust. As per the recent filing of SEC Staley has bought more than 28,000 shares
Investment Bank Morgan Stanley has purchased more than 28,000 shares of Grayscale Bitcoin Trust. The SEC has informed that the bank has purchased the shares through its Europe opportunity Fund. Grayscale is owned by CoinDesk’s parent company known as Digital Currency Group.
The exposure is given to the investment bank through Grayscale which invests in established and emerging companies in Europe. As per the filing on June 28, Morgan Stanley owns shares of GBTC equivalent to $1.3 million at the time of filing.
The allocation is followed by Morgan Stanley’s April filing. According to the filing, the firm has given a green signal to certain funds to gain exposure to bitcoin. SEC has informed that each fund and the European opportunity fund, institutional fund, and insight fund can invest up to 25% of its total assets into crypto-related products.
The investment bank has made the bold move with $4trillion in client assets, to accept the leading cryptocurrency as an asset class. In March Morgan Stanley had offered its wealth management clients access to bitcoin funds. One of the first large banks in the U.S. Morgan Stanley has been doing experiments in the crypto industry for some time now.
Grayscale crypto asset manager function in bitcoin trust
The crypto asset manager, Grayscale has $29 billion in assets under management. The bitcoin trust of the firm is a medium for institutions to allocate funds to the bellwether cryptocurrency through a product structured as a security.
The firm currently has 654,600 bitcoin, which is more than 3% of the leading cryptocurrency’s supply. Grayscale shares can be purchased by accredited investors directly. They can be purchased at the net asset value by depositing BTC or US dollars. The shares can later be sold in the secondary market only after completing the six-months lock-in period.
GBTC shares will be unlocked in July after the purchase of a six-month lock-in period. They are probably releasing 140,000 bitcoin worth of shares.
April Filing
The megabank in April gave some of its mutual funds to be invested indirectly in bitcoin via cash-settled futures contracts and Grayscale Bitcoin trust. According to the filing, certain funds were given go-ahead to seek exposure to bitcoin indirectly.
This has implored Morgan Stanley’s growing interest in Bitcoin as an asset class.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
