Morgan Stanley Owns Over 1 Million Shares in Grayscale Bitcoin Trust

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According to registration with the US Securities and Exchange Commission (SEC), banking giant Morgan Stanley owns over one million shares in the Grayscale Bitcoin Trust (GBTC).

In March, Morgan Stanley became the first major US bank to allow its clients to invest in cryptocurrency-based instruments. In the spring, the bank's wealthy clients, who have assets worth at least $2 million, gained access to three bitcoin funds. Morgan Stanley believes that such a volatile asset is suitable for investors with "aggressive risk tolerance."

Corporate clients—investment companies—need to own assets worth at least $5 million. Also, companies must be Morgan Stanley's clients for at least six months. Investors who have gained access to cryptocurrency funds will be able to invest in them no more than 2.5% of the total volume of their investment portfolio.

The files filed with the SEC indicate that more than 30 Morgan Stanley funds hold a large number of GBTC shares. The largest is the Morgan's Insight Fund with over 928,051 worth around $36 million or over 700 Bitcoin (BTC). Its other funds, including Morgan Stanley Institutional Fund Inc, Morgan Stanley Institutional Trust, Morgan Stanley Variable Insurance Fund, also have large amounts in stock.

In addition to its large Grayscale Bitcoin Trust position, Morgan Stanley invests in various crypto companies. In April, the bank increased its BTC exposure with 12 investment instruments. In addition, the bank was a major investor in a cryptocurrency company backed by Coinbase. Morgan Stanley spearheaded $48 million Series B funding for the blockchain-based platform, Securitize.

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