Last updated on May 18th, 2024 at 12:05 pm
A key revelation is that Morgan Stanley, an American multinational investment bank known worldwide, has decided to join the Bitcoin ETF race with the rest of the competitors. The bank has filed an S-1 with the U.S. Securities and Exchange Committee (SEC) to provide exposure for a dozen of its funds to Bitcoin ETFs.
Morgan Stanley Funds to Invest in Bitcoin ETF
The fact statement says that some Morgan Stanley funds, such as the “Advantage,” “Asia Opportunity,” “Counterpoint Global,” “Developing Opportunity” “Global Insight,” “Global Opportunity,” “Global Permanence,” “Growth,” “Inception,” “International Advantage,” “International Opportunity,” and “Permanence” Funds, may now gain indirect investment On the contrary, the filing proposes constraints on the amounts of funds to be allocated to the Bitcoin ETF.
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🚨 JUST IN: Morgan Stanley has filed with the SEC to get #Bitcoin ETF exposure for *12* of its funds.
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Soon to be sold by their 15,000+ brokers. pic.twitter.com/TEoPCdpshB
— Julian Fahrer (@Julian__Fahrer) April 29, 2024
Morgan Stanley’s lead on this matter reflects a growing trend among traditional financial service providers who are increasingly focused on cryptocurrency investments. Morgan Stanley seeks to achieve this by creating the mechanism for the funds to buy Bitcoin ETFs and delivering the client’s exposure to the digital currency along with risk management.
In addition, the application recognizes that buying ETFs would generally have the same risks as investing directly in the cryptocurrency. It stresses that such barriers may be subject to the whole spectrum of risks that Bitcoin possesses, along with the risks that are particular to ETFs.
Crypto ETF Fluctuations Seen as Temporary Pause
Morgan Stanley’s pick follows recent reports disclosing the bank’s plans to grant permission to more than 1500 brokers to promote the securing of Bitcoin ETFs. This move by Morgan Stanley could potentially increase demand.
Bitcoin ETF flows may go up or down according to recent data, but a top-notch brokerage firm is positive about the prospects of Bitcoin. Bernstein reaffirms its bullish position and accordingly formulates a conservative $150k price target for next year. The company believes that the first decline in the flows of crypto ETFs may just be a pause and does not suggest itself be treated as a coincidence.
With the advancement of cryptocurrency among financial institutions, Morgan Stanley’s entry into Bitcoin ETFs is seen as a defining moment in the convergence of classical and digital assets.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.