Morgan Stanley: SEC paper reveals stake in Grayscale bitcoin trust

The Grayscale Bitcoin Trust is by far the largest Bitcoin fund. Now a document becomes public that reveals a large stake of the US bank Morgan Stanley in this fund.

According to recent documents from the US Securities and Exchange Commission (SEC), major bank Morgan Stanley holds large stakes in Grayscale Bitcoin Trust (GBTC). An anonymous Twitter user named MacroScope has already shared the document. In it, it can be seen that over 30 Morgan Stanley funds hold large amounts of GBTC shares. The largest appears to be Morgan’s Insight Fund with over 928,051 shares worth around $36 million or over 700 Bitcoin (BTC).

However, Morgan Stanley Institutional Fund Inc, Morgan Stanley Institutional Trust, Morgan Stanley Variable Insurance Fund and others also have large amounts, according to the report. In this regard, the BTC price slide from two months ago was used to add to positions. That’s because on June 28, 2021, when the price was still around $30,000, Morgan Stanley announced a large position in GBTC through its Europe Opportunity Fund.

A few months earlier, the banking giant became the first US-based financial institution to offer bitcoin funds to its clients. Since then, things have been on a steady upward trajectory, with Morgan Stanley seemingly eager to further expand its exposure to the crypto industry. From there, the news of the distribution at Grayscale Bitcoin Trust could well fuel the market further.

Other major banks also show bitcoin commitment

This is because Wells Fargo, JP Morgan and Goldman Sachs are other major US banks that are increasing their exposure to the crypto sector. Together with Morgan Stanley’s large exposure, institutional investors now already own 6 percent of the total BTC in circulation. According to Buy Bitcoin Worldwide, 816,379 BTC worth $38.2 billion are currently held by 14 bitcoin fund issuers and asset managers. This represents 4 percent of the supply of the largest cryptocurrency by market capitalization. Of those 816,379 BTC, Grayscale Bitcoin Trust alone holds a whopping 654,600 BTC. However, it is thought that access to at least a fifth of all Bitcoin has been lost due to forgotten passwords etc. This would mean that asset managers and corporations control an even larger share of the supply.

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Of the listed companies, MicroStrategy occupies a special position. Since the beginning of July this year, it has added 3,907 bitcoin to its hoard and now holds 108,992 BTC worth $5.3 billion. It is followed by a wide margin by electric car manufacturer Tesla, which has stopped buying bitcoin but still accounts for 20 percent of bitcoin held by private companies.