Morgan Stanley Seeks Indirect Exposure to Bitcoin

8 months ago 4

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Morgan Stanley, a leading global investment bank and wealth management firm, has filed for Bitcoin exposure in several institutionally focused funds to bring the top digital asset to the public.

In an SEC filing, Morgan Stanley stated that some funds would have indirect exposure to Bitcoin through its investments in ETFs.

Morgan Stanley Wants Bitcoin Exposure

Morgan Stanley wants to integrate the recently launched spot Bitcoin ETFs into 13 investment vehicles. These include Advantage Portfolio, Asia Opportunity Portfolio, Counterpoint Global Portfolio, and International Opportunity Portfolio. However, these funds are restricted from allocating more than 25% of their assets to Bitcoin ETFs.

Still, Morgan Stanley acknowledged that these investments also have the same risks as investing in cryptocurrencies and Bitcoin.

“The Fund may obtain investment exposure to Bitcoin indirectly through investing in Bitcoin ETFs. The amount of the Fund’s investment in Bitcoin ETFs will be subject to certain limits at the time of investment. The risks of investing in Bitcoin ETFs are similar to the risks of investing in cryptocurrencies generally. Investments in a Bitcoin ETF expose the Fund to all of the risks related to Bitcoin,” the filing reads.

This is not the first time Morgan Stanley has positively responded to crypto-related investments. Several of the firm’s funds previously held Grayscale’s Bitcoin Trust (GBTC) shares before it transitioned to a spot-traded ETF.

The investment bank’s recent filing could significantly boost the adoption and expansion of newly introduced spot Bitcoin ETFs. Since the launch in January, Bitcoin ETFs have spurred a surge in Bitcoin’s price, surpassing $60,000. This surge is fueled by substantial ETF inflows exceeding $7 billion and significant accumulation by large investors.

While many anticipate this upward trend to persist, experts warn of a potential Bitcoin price correction. Technical analysts noted that Bitcoin may be approaching indicators signaling a cycle top.

“Since September 11, Bitcoin has advanced 233%. The worst closing price decline was was -15.7% from January 8 to January 22. I believe a dip below 55,000 would be a buying opportunity, although such a dip is not my prediction,” trading veteran Peter Brandt said.

Another indicator, the golden ratio multiplier, suggests that Bitcoin tops typically occur around “Level 5.” This threshold sits at $67,500 in the current cycle. Interestingly, this indicator has proved accurate in all previous cycles, with Bitcoin repeatedly retracing after reaching this level.

“Level 5 is where every cycle mid-top has been made on these bands, holding the most exorbitant price target for any mid-top price point,” technical analyst CryptoCon explained.

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