{"id":460213,"date":"2021-04-01T20:00:11","date_gmt":"2021-04-01T20:00:11","guid":{"rendered":"https:\/\/wncen.com\/?p=460213"},"modified":"2021-04-01T19:16:59","modified_gmt":"2021-04-01T19:16:59","slug":"why-morgan-stanley-is-gaining-exposure-to-bitcoin-btc","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/why-morgan-stanley-is-gaining-exposure-to-bitcoin-btc\/","title":{"rendered":"Why Morgan Stanley is gaining exposure to Bitcoin (BTC)?"},"content":{"rendered":"
In yet another bullish announcement for Bitcoin this week, banking giant Morgan Stanley has filed a document<\/a> with the Securities and Exchange Commission (SEC) to gain exposure to BTC. Per the document, 12 of Morgan Stanley’s investment funds will allocate capital in BTC financial products.<\/p>\n Morgan Stanley’s investment funds eligible to gain indirect exposure to Bitcoin include Counterpoint Global Portfolio, managed by Dennis Lynch, Asia Opportunity Portfolio, Growth Portfolio, Inception Portfolio, International Advantage Portfolio, among others.<\/p>\n The funds will be able to invest in Bitcoin futures contracts settled in cash or Grayscale Bitcoin Trust (GBTC) shares of the Grayscale firm. Investment in BTC will not have to be ongoing and will be made through a subsidiary that will operate as an exempted company governed by the laws of the Cayman Islands.<\/p>\n The document states that investment in Bitcoin futures may change if regulations on the underlying asset change. In addition, Morgan Stanley states that these financial derivatives have a relatively small trade with other futures and may be subject to manipulation.<\/p>\n On its possible GBTC holding, Morgan Stanley rates fluctuations in the fund’s premium as one of its potential investment risks. It has “historically” traded at a premium or discount to the price of BTC. In fact, during the entire month of March, the GBTC premium turned negative and reached a low of approximately -10%, as research firm Skew registers. Morgan Stanley\u2019s document claims:<\/p>\n To the extent GBTC trades at a discount to NAV, the value of a Fund’s investment in GBTC would typically decrease, even if the value of GBTC’s underlying holdings in bitcoin does not decrease.<\/p><\/blockquote>\n A few weeks ago, Morgan Staley revealed that it would give exposure to Bitcoin to its wealthiest clients via 3 funds created in cooperation with Galaxy Digital and FS Investments, and NYDIG. The bank’s decision was taken after receiving pressure from its clients<\/a>.<\/p>\n