- A Morgan Stanley fund owned 58,116 Grayscale shares value $2.018 million by July 31, in keeping with a SEC submitting Monday.
- In April, the identical fund owned 28,298 shares value $1.3 million.
- “I like the thought right here you could wager small, win large,” Morgan Stanley’s Dennis Lynch mentioned on crypto final week.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Funding financial institution Morgan Stanley has been step by step ramping up its involvement within the cryptocurrency market this yr, and just lately doubled down on its bitcoin publicity through the Grayscale Bitcoin Belief (GBTC), in keeping with a SEC submitting Monday.
The Morgan Stanley Europe Alternative Fund owned 58,116 GBTC shares value $2.018 million as of July 31, in keeping with a submitting on Monday. Previous to that, the fund owned 28,298 shares worth $1.3 million as of April 30.
The Grayscale Bitcoin Belief points shares which might be solely tied to bitcoin and its market worth.
Dennis Lynch, who heads Morgan Stanley’s asset administration subsidiary Counterpoint, which is unrelated to the Europe Alternative Fund, spoke recently on the Morningstar annual funding convention at which he laid out why he is just lately invested in bitcoin.
“I like the thought right here you could wager small, win large,” Lynch mentioned.
“I wish to say that bitcoin is like Kenny from South Park, he dies each episode and comes again once more,” Lynch mentioned. “And so … you see within the newspaper, the media, that bitcoin’s lifeless, it is over this time, and it simply continues to persist.”
Funding in cryptocurrencies has boomed this yr and despatched the costs of the main cash, together with bitcoin, to report highs. Bitcoin, the biggest by market worth, at present trades round $41,000, having gained over 300% within the final 12 months alone. It’s extremely risky, however has proven nice resilience within the face of promoting strain.
Morgan Stanley is one in every of many main banks that’s step by step rising its publicity to the cryptocurrency market. JPMorgan gave its retail wealth shoppers entry to crypto funds that included publicity to the Grayscale Bitcoin Belief in July this yr.
The Grayscale Belief was established in 2013 and is now the biggest public holder of bitcoin. The belief has $28.2 billion in belongings beneath administration in keeping with its website. Its shares are at present buying and selling round $34.18. They had been valued at round $36 when Morgan Stanley’s fund mentioned it owned the brand new shares.