Wall Street investment bank Morgan Stanley has purchased 28,289 shares of Grayscale Bitcoin Trust (GBTC) through its Europe Opportunity Fund, according to a filing by the firm with the U.S. Securities and Exchange Commission (SEC).
According to a June 28 filing with the U.S. Securities and Exchange Commission (SEC), the Morgan Stanley Europe Opportunity Fund is holding 28,298 shares of the Grayscale Bitcoin Trust, or GBTC, indicating that institutional adoption of digital assets is growing. Around the time of the filing, the exposure was worth about $1.3.
The allocation follows an April filing by Morgan Stanley showing that the firm approved a handful of institutional funds to invest indirectly in through cash-settled futures contracts and Grayscale’s Bitcoin Trust, including the Institutional Fund, Institutional Fund Trust, Insight Fund, and Variable Insurance Fund.
Per the filing, each fund may invest 25% of its total assets into bitcoin-related products.
Grayscale currently is the world’s largest crypto asset manager, with $29 billion in assets under management with its Grayscale Bitcoin Trust accounting for the lion’s share of assets at over $21.7 billion.
Earlier in February, Morgan Stanley’s head of emerging markets and chief global strategist, Ruchir Sharma published a report saying that regardless of where Bitcoin's price goes next, cryptocurrencies are here to stay as a serious asset class, adding:
“Despite the jitters natural in a global pandemic, cryptocurrencies are rapidly gaining popular support as alternatives to gold and the dollar.”
"We see fundamental reasons to believe that regardless of where the price of bitcoin goes next cryptocurrencies are here to stay as a serious asset class" he continued.
One reason for this “is growing distrust in fiat currencies, thanks to massive money printing by central banks.” Another reason is “generational,” as young people view cryptocurrency as an improved version of traditional currencies as this age group believes “the open-source software behind Bitcoin makes it more transparent, transferrable and trustworthy than paper money printed by governments.”