The American giant of finance, Morgan stanley buy Bitcoin indirectly through the fund Grayscale Bitcoin Trust (GBTC). According to a presentation before the United States Securities and Exchange Commission (SEC), the bank would have traded 28,289 shares of the aforementioned fund.
The GBTC shares acquired by Morgan stanley, are priced at $ 29.25 US dollars each. Thus, the total value of the purchase described amounts to an approximate amount of $ 827,000 dollars.
In this way, the North American bank expands its foray into the world of cryptocurrencies. About two months ago, it became known that Morgan stanley directed 25% of some of its funds, including institutional and others, to the Bitcoin site via GBTC and other futures contract funds.
Why is Morgan Stanley increasing its purchase of Bitcoin?
The high demand from its customers would be the reason behind the increase in the purchase of Bitcoin by Morgan stanley. In that sense, this international financial institution became the first of American origin to offer its clients investment services in digital assets. This occurred last March 2021.
This fact contrasts with the vision that analysts of large banks have on Bitcoin, which they describe as a “high-risk asset.” Despite this, a large part of its investments are directed towards cryptocurrencies, even indirectly through funds with capital protection guarantees such as Grayscale.
It should be noted that Grayscale, is one of the firms with the highest amount of bitcoins in possession. According to its public data, it has about 649,130 virtual currencies, which are equivalent to 3% of all the BTC existing in the market.
The foundation of Grayscale, dates from the past 2013 by the firm Digital Currency Group (DCG). The objective of this is to provide its clients with the option of partial acquisition and assured exposure to cryptocurrencies. This has driven numerous institutional investors to the world of Bitcoin, such as Morgan Stanley who has expanded the purchase of this asset.
This is Grayscale in magnitude
The GBTC fund offers assisted Bitcoin call options to large institutions such as Morgan Stanley. Currently, the Assets Under Management (AUM), of its clients, amount to $ 22.4 billion dollars.
The number of clients and holders of GBTC shares is close to one hundred. Together, they own 25 million 33 thousand 581 shares. Some of the largest holders of these shares are Kinetics Portfolio Trust, Novare Capital Management Y Ark Investments Management LLC, among others.
It should be taken into consideration that GBTC buys Bitcoin, not only for institutions that want to own it indirectly. At the same time, it does it for others who want direct exposure, that is, with volatility risks included. Among the latter, stands out MicroStrategy, a company that has acquired almost 100,000 bitcoins with the advice of Grayscale.
GBTC has thus become a kind of cryptocurrency monopoly within the United States. The power of its sponsoring company, DCG, is of significant magnitude, making it one of the largest Bitcoin whales. Likewise, it is the owner of the CoinDesk news portal, service companies wallets, among other.