Morgan Stanley doubles stake in grayscale bitcoin trust

Big investment banks have done a great deal for the crypt space this year, with many of them expanding their portfolios to include digital assets.

Morgan Stanley, one of the largest in the United States, has made yet another foray into the industry.

Warming Up Even More to Crypto

Earlier this week, Morgan Stanley filed a report with the Securities and Exchange Commission (SEC), confirming that it had increased its stake in Grayscale Investments - the largest crypto asset management firm in the world. The filing showed that the Morgan Stanley Europe Opportunity Fund, which makes strategic investments across Europe and the rest of the world, now owns 58,116 shares of the Grayscale Bitcoin Trust.

With the Bitcoin Trust going for about $34.28 a share, Morgan Stanley’s entire portfolio in Grayscale is valued at a little over $2 million.

The new filing is especially impressive, showing that Morgan Stanley has more than doubled its Bitcoin exposure since April of this year. At the time, a separate SEC filing showed that the investment banking giant held 28,298 shares of the Grayscale Bitcoin Trust.

The development underscores what has been quite a fruitful year for Morgan Stanley and the crypto space. The investment bank has been expanding its capacity significantly, especially with relation to crypto exposure. Its Europe Opportunities Fund aims at investing in undervalued, high-quality stocks and products across the continent, with the firm looking to optimize returns. Given how the crypto market has performed over the past few years, digital assets seem like a great buy option for organ Stanley.

Expanding Its Crypto Expertise

Besides investing, Morgan Stanley has also expanded its support for crypto through research. Earlier this month, the banking giant launched a crypto-focused research arm. Morgan Stanley reportedly announced this in a memo to staff, with experienced analyst Sheena Shan leading the team as the bank’s head cryptocurrency analyst.

Shah previously worked as organ Stanley’s lead currency strategist, where she covered g10 currencies for almost a decade. She was also instrumental in the bank’s early crypto efforts. In the new role, Shah will analyze the impacts of equities and cryptocurrencies on fixed-income investments like corporate bonds and treasury bills.

The move is in addition to several related endeavors by top investment banks. Back in August, JPMorgan, the country’s biggest banking institution, was reported to be offering access to cryptocurrency funds to its customers.

As Business Insider reported, JPMorgan was offering access to a Bitcoin trust created by the New York Digital Investment Group (NYDIG). The banking giant was also cited as having access to Grayscale’s investment funds in Bitcoin, Ether, Bitcoin Cash, and Ethereum Classic. However, the bank will only give access to investors who expressly ask for it.

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