Morgan Stanley Reports $270M Bitcoin ETF Investment in Grayscale’s GBTC

Morgan Stanley, one of the world's largest investment banks, has revealed a significant investment in Bitcoin, as per a recent report from CryptoSlate. According to its first-quarter 13F disclosure, the bank has invested $269.9 million in spot Bitcoin ETFs via Grayscale’s GBTC.

This investment makes Morgan Stanley one of the largest holders of GBTC, following Susquehanna International Group’s $1 billion investment.

Morgan Stanley is not alone in this investment strategy. Other Global Systemically Important Banks (G-SIBs), such as the Royal Bank of Canada, JP Morgan Chase, Wells Fargo, BNP Paribas, and UBS, have also disclosed investments in spot Bitcoin ETFs. 

Earlier reports suggested Morgan Stanley might allow its brokers to directly recommend Bitcoin ETFs to customers. Previously, brokers could not actively pitch these products to clients; they could only purchase them on an unsolicited basis. A potential policy change could have enabled brokers to proactively recommend Bitcoin ETFs.

Other Major Investments

On May 14, Pine Ridge Advisers reported a $205.8 million investment in spot Bitcoin ETFs, including $83.2 million in BlackRock’s IBIT, $93.4 million in Fidelity’s FBTC, and $29.3 million in Bitwise’s BITB. 

Boothbay Fund Management disclosed a $377 million exposure, with substantial investments in IBIT, FBTC, GBTC, and BITB. Aristeia Capital, Graham Capital Management, CRCM LP, and Fortress Investment Group have also made notable investments in Bitcoin ETFs.

Impact on Bitcoin Prices

This wave of institutional investments appears to have positively influenced Bitcoin's market performance. The digital currency has surged by 6% in the past 24 hours, reaching $66,000. Bitcoin's price has climbed from a 24-hour low of $61,330.41 to a high of $66,446.23.

The rise in Bitcoin's price coincides with a drop in Consumer Price Index (CPI) data, suggesting the Federal Reserve might soon cut interest rates. Lower interest rates are attractive for high-yield assets like Bitcoin.