$1.5T Morgan Stanley is Buying US Spot Bitcoin ETF

Recent 13F SEC filings have revealed several major US financial institutions are allocating serious money to Bitcoin via spot ETFs, with these filings disclosing the holdings of institutional investors with over $100 million allocated.

After the SEC approved several spot Bitcoin ETFs earlier this year, investors have eagerly awaited these disclosures. The filings reveal names like the State of Wisconsin Investment Board, Wells Fargo, JPMorgan and others.

Now, the latest disclosure shows mammoth financial services firm Morgan Stanley has bought $269.9 million worth of Grayscale’s GBTC. This makes Morgan Stanley one of the largest institutional holders of GBTC, besides Susquehanna’s $1.8 billion position.

NEW: $1.5 Trillion Morgan Stanley reveals it has spot #Bitcoin ETF exposure in SEC filings 👀 pic.twitter.com/tRAznuHHRF

— Bitcoin Magazine (@BitcoinMagazine) May 17, 2024

With over $1.5 trillion in assets under management, this allocation signals the Wall Street titan’s growing conviction in bitcoin’s role in portfolios. 

It joins other major banks like JP Morgan, BNP Paribas, and Royal Bank of Canada that have disclosed spot Bitcoin ETF purchases.

Despite some firms like Vanguard opposing Bitcoin, the broader shift has been toward embracing Bitcoin exposure. Clients are demanding access to Bitcoin’s growth prospects as both an inflation hedge and an alternative asset class.

Old guard banks steadily allocating to Bitcoin ETFs represents a monumental change. Morgan Stanley’s purchase follows execs speaking positively about Bitcoin’s potential. Though still a small portion of AUM, it indicates legacy finance sees bitcoin’s value.

As major traditional institutions warm up to Bitcoin, accessible ETFs have enabled dipping their toes in. The Q1 disclosures provide tangible evidence these giants are acting on growing conviction in bitcoin’s staying power.