Morgan Stanley has increased its exposure to the flagship cryptocurrency Bitcoin, as the investment giant has revealed a 2.1% allocation to BlackRock’s spot Bitcoin ETF, IBIT, in its Institutional Fund.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), the financial giant revealed the fund has net assets of over $10 million, which would mean its allocation to BlackRock’s iShares Bitcoin Trust is above the $210,000 mark.
Beyond IBIT, Morgan Stanley’s fund has also maintained a 4% allocation to MicroStrategy, the largest corporate holder of Bitcoin with 226,500 BTC in its treasury. These investments collectively represent a substantial portion of the fund’s overall portfolio, suggesting that the firm views Bitcoin as a strategic asset with long-term potential.
The Institutional Fund is managed by Morgan Stanley’s Counterpoint Global, a division that focuses on identifying and investing in companies with exceptional growth prospects. Morgan Stanley itself is the world’s sixth-largest asset manager with over $1.5 trillion in assets under management.
Last month, the firm announced that it would soon start allowing its financial advisors to offer Bitcoin exchange-traded funds (ETFs) – including IBIT – to eligible clients, marking a significant milestone among major Wall Street banks.
The firm’s 15,000 financial advisers have, since early August, been able to present both BlackRock’s IBIT and Fidelity’s Wise Origin Bitcoin Fund to eligible clients, highlighting the increasing acceptance of Bitcoin in mainstream finance.
To mitigate risks, Morgan Stanley will monitor clients’ crypto holdings to ensure they do not accumulate excessive exposure to this volatile asset class.
Featured image via Unsplash.
