Recent data analysis from Morgan Stanley investment ventures has indicated recently that the Wall Street bank has been investing in GBTC shares consistently. At the end of the Q3, Morgan Stanley held more than 2.64 million GrayScale Bitcoin Shares invested in various funds and investment vehicles.
The official financial declaration with SEC showed that Insight Fund by Morgan Stanley currently holds 1.5 million GBTC shares. Looking at the financial data from Q2, the amount of GBTC in the same fund was limited to 92.8K in June. In the same manner, the Institutional Fund’s Growth portfolio by Morgan Stanley holds 3.6 million GBTC shares in Q3 close that is a massive increase from 2.1 million shares in the last quarter.
More Traditional Financial Institutions Continue to Seek Exposure in Bitcoin-related Products
The officials from Morgan Stanley bank have not commented on the matter of massive interest in the GBTC shares. The news was first made public knowledge by a Twitter account called MacroScope. The same Twitter account also revealed that the Global opportunity Portfolio of Morgan Stanley holds 1.4 million GBTC shares in Q3. However, Morgan Stanley is not the only financial giant venturing into Bitcoin exposure.
According to data provided by Bobby Blue, an analyst from Morningstar he claimed that Ark Investment is among the largest holders of GBTC shares. Blue further explained that Next Generation Internet ETF or ARKW consists of $375 million worth of GBTC shares. He also added that more than 47 mutual funds, model portfolios, and SMAs have invested in Bitcoin exposure this year.
Michael Sonnenschein, CEO of Grayscale, was recently speaking to the media when he claimed that the client wished for an ETF, and the company is in the process of converting GBTC trust into an ETF as soon as possible. Meanwhile, Morningstar analyst Blue added that the 2% expense ratio has contributed to lower returns for investors of GBTC.
He explained that the GBTC exposure provided a 42% return to the investors during the three quarters of 2021. Meanwhile, direct exposure allowed the digital investors to gain a 95% return during the same period. CEO of Morgan Stanley, James Gorman, claimed that the organization plans to keep investing in GBTC because cryptocurrencies are here to stay and no more dismissed as a fad in the financial markets.