Morgan Stanley Bitcoin ETF Investment Was Revealed With $188M in IBIT

Key Points:

• Morgan Stanley disclosed holding over $188 million in BlackRock’s iShares Bitcoin Trust as of June 30, 2024.
• The Morgan Stanley Bitcoin ETF investment aligns with a growing trend among institutional investors.

Morgan Stanley revealed a substantial investment in Bitcoin through the BlackRock iShares Bitcoin Trust (IBIT), according to a filing with the U.S. Securities and Exchange Commission (SEC) on August 14, 2024.

Read more: Morgan Stanley Clients Get Permission to Expand Bitcoin ETF Investments

Morgan Stanley Discloses $188 Million Investment in IBIT

As of June 30, 2024, the investment banking giant held around $188 million in IBIT, which is over 5.5 million shares. The Morgan Stanley Bitcoin ETF investment increased its confidence in Bitcoin, much the same as institutional investors, who are generally positive about cryptocurrency as an inflation hedge and a protection measure against market volatility.

The filing comes just days after a similar disclosure by Goldman Sachs, which has also made large investments in Bitcoin-focused funds. In addition to the big IBIT position, Morgan Stanley has made smaller investments into other cryptocurrency-related funds: the Valkyrie ETF Trust, the Fidelity Wise Origin Bitcoin Fund, and the ProShares Bitcoin Strategy ETF.

Regulatory Scrutiny Looms Over Morgan Stanley Bitcoin ETF Investment

Morgan Stanley made an announcement recently that it would soon allow its 15,000 licensed financial advisors to advise on Bitcoin ETFs for wealthy clients such as BlackRock’s IBIT and Fidelity’s FBTC. The same will apply only to those with at least $1.5 million in net worth and a high-risk tolerance.

However, the Morgan Stanley Bitcoin ETF investment has raised eyebrows, notably including former SEC official John Reed Stark. He says Morgan Stanley could be under very serious regulatory scrutiny by the authorities, which might result in the largest SEC and FINRA examination sweep in history.