As a seasoned researcher with a keen interest in the evolving world of finance and technology, I find myself intrigued by the latest moves of Morgan Stanley in the Bitcoin market. The bank’s strategic shift from Grayscale to BlackRock’s Bitcoin ETF, coupled with its significant investment in iShares Bitcoin Trust (IBIT), paints a picture of a financial institution that is not shying away from embracing digital assets.
In the second quarter, Morgan Stanley made a significant change in its Bitcoin ETF holdings, as indicated in a report submitted to the U.S. Securities and Exchange Commission on August 14th. These reports, known as 13F filings, are submitted by institutional investment managers who manage at least $100 million in assets. Furthermore, these filings offer insights into the managers’ stock holdings.
Much like Goldman Sachs, Morgan Stanley amassed an approximately $190 million stake in the BlackRock Bitcoin ETF (IBIT) during Q2 of this year. By purchasing over 5.5 million shares of the iShares Bitcoin Trust (IBIT), Morgan Stanley has joined the top five holders of this trust, positioning itself as one of its significant investors.
In addition to BlackRock, Morgan Stanley owns a total of 26,222 shares in the ARK 21Shares Bitcoin ETF (ARKB), which has a current value of approximately $1.57 million. Yet, this allocation is lower than the $2.3 million worth of shares they had at the close of the first quarter.
Morgan Stanley Liquidates Its Massive GBTC Holdings
Starting Q1 2024, Morgan Stanley plans to significantly reduce its ownership of Grayscale’s Bitcoin Trust (GBTC) by selling approximately $269.9 million worth of shares. After the sale, the firm will only have a tiny remaining stake in GBTC, worth about $148,000. This action indicates a reduced exposure to GBTC for Morgan Stanley.
Ever since its launch in January, there’s been a significant drain of funds from GBTC due to its high management fee of 2.5%, which is almost tenfold compared to what other competitors offer. Conversely, investments into BlackRock’s IBIT have skyrocketed past $20 billion, positioning it among the leading Bitcoin ETFs in terms of Assets Under Management (AUM). Check out the following entities who are major stakeholders in BlackRock’s IBIT, with Goldman Sachs ranking second behind Capula management.
Who bought the most IBIT this quarter
— zerohedge (@zerohedge) August 15, 2024
On August 14th (Wednesday), a combined total of $81.4 billion was withdrawn from U.S.-based Bitcoin ETFs, with Grayscale’s GBTC accounting for over $56 million in withdrawals and Fidelity’s FBTC contributing approximately $18 million as well.
Furthermore, Bitcoin’s price has been affected by selling activity, dropping by 4.35% and currently hovering near $58,130. This decline occurs even as US CPI data suggests a decrease in inflation rates. Simultaneously, Defiance is preparing to introduce a 1.75x long ETF that focuses on MicroStrategy.
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2024-08-15 11:31