Morgan Stanley Doubles its Stake in Grayscale Amid China’s Crypto Crackdown
American multinational investment bank and financial services company, Morgan Stanley has doubled its stake in Grayscale Bitcoin Trust (GBTC) despite the latest crackdown on the premier cryptocurrency by Chinese regulators. As unveiled by market analyst, MacroScope, drawing on the company’s latest filing with the US Securities and Exchange Commission (SEC), the banking giant, through the Morgan Stanley Europe Opportunity Fund reported 58,116 shares of Grayscale BTC as of July 31.
The company’s portfolio was placed at just about 28,289 shares earlier this year, showcasing how bullish the firm has been when it comes to gaining exposure to the digital currency ecosystem.
In an SEC filing today, Morgan Stanley Europe Opportunity Fund reported 58,116 shares of Grayscale BTC as of July 31. It reported 28,289 shares earlier this year.Multiple MS institutional portfolios reported Grayscale BTC positions in Aug.Filing:https://t.co/g55TBgSj0Q— MacroScope (@MacroScope17) September 27, 2021
There has been a growing enthusiasm amongst institutional investors to gain exposure to Bitcoin and the broader cryptocurrency ecosystem in the past year. While a direct acquisition of the assets is not just discouraged per the volatility, the digital currency ecosystem is not regulated, and this serves as a turn-off for big players like Morgan Stanley.
The Grayscale Bitcoin Trust (GBTC) is a regulated investment vehicle that tracks the real-time price or performance of Bitcoin. It has become a very popular option for institutional players to gain exposure to the nascent world of crypto. The latest buyups by Morgan Stanley can be said to be substantially fueled by the correction the market has witnessed in the past months as an insistent regulatory crackdown in the industry intensified.
The crackdowns stirred a slump in price which gave the perfect discount for the banking firm to shore up its positions. Besides this, many banking clients who want exposure to crypto are willing to seek the products elsewhere if their current banks refuse to provide much-needed services. This also accounts for the reason why Morgan Stanley, a publicly-traded firm is bolstering its positions in one of the biggest trust funds in the ecosystem.
More Crackdown, More Discount
With more crackdown imminent as more countries seek less competition ahead of their Central Bank Digital Currencies (CBDCs) debuts, it implies that investors will continually gain discounts to take more positions in such investments as that of Grayscale’s.
Banks are particularly positively geared to investment like Grayscale’s as it saves them the complicated hassle of storing the underlying digital currencies as well the risks that are attached to it.Source