The recently authorized Bitcoin ETF market has attracted significant investment from American multinational investment bank Morgan Stanley Bitcoin ETF, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). Two well-known Bitcoin exchange-traded funds—GBTC and Ark Invest’s ETF—were included as holdings in the bank’s filing.
Morgan Stanley’s Multi-Million Dollar Bet
According to Fintel data, Morgan Stanley bought 31,712 shares of Ark’s 21Shares ETF (ARKB) and put $269 million into the Grayscale ETF. Thanks to this substantial transaction, Morgan Stanley Bitcoin ETF Stanley became the third-largest holder of GBTC ETF shares and entered the top 20 list of Ark’s ETF investors. These events followed after 12 investment funds managed by Morgan Stanley were recently filed with the SEC, requesting permission to include spot Bitcoin ETFs. As a bonus, Morgan Stanley is the first global investment bank to solicit customer investments in spot Bitcoin ETFs aggressively; they recently revealed intentions to enable 15,000 brokers to do just that.
Institutional Giants’ Investments In The Bitcoin ETF Market
Morgan Stanley Bitcoin ETF Stanley’s and other major financial institutions’ growing interest in cryptocurrencies could usher in a new age of mainstream acceptance in the industry. Millennium Management, which oversees over $64 billion in assets, just put an unprecedented $2 billion into several Bitcoin ETFs, making it one of the most noteworthy investments in the ETF market in the past few weeks.
A BlackRock ETF got $98.6 million from the Wisconsin Investment Board. The Boston-based hedge fund Bracebridge Capital has substantial holdings in the ARKB ETF and the IBI, provided by Ark Invest and BlackRock. A total of $303 million entered Bitcoin spot ETFs on Wednesday, according to the most recent statistics from SoSo Value. Of this, $27.0466 million entered Grayscale’s GBTC in only one day. Bitwise’s BITB ETF had $86.2578 million and Fidelity’s FBTC ETF $131 million.
The fact that these massive financial institutions are becoming involved with cryptocurrencies shows they see long-term profit potential. With this endorsement, the market cap and popularity of the most popular cryptocurrency might skyrocket, luring in big-wig investors.
Digital assets are starting to have some traction as investment possibilities, with major Wall Street players getting behind Bitcoin and the cryptocurrency sector as a whole. With an increased optimistic mood in the market, Bitcoin has been fighting for two days in a row to break through the critical $66,000 resistance level, and as of this writing, it is trading around $65,700.
Institutional ownership of spot bitcoin ETFs grows.
In first-quarter 13F filings, hundreds of institutional investors listed U.S. spot bitcoin ETFs, including Morgan Stanley. Millennium Management beat all holders yesterday. On March 31, their holdings in five funds—ARK Invest’s ARKB, Bitwise’s BITB, Grayscale’s GBTC, and BlackRock’s. IBIT and Fidelity’s FBTC—totalled $1.94 billion. Based on fair market value, such shares comprised only 3% of the hedge. Fund’s $64 billion assets under management, according to its quarterly 13F filing with the SEC.
Millennium dominates bitcoin ETF holdings with $2 billion in five ETFs. Over 500 holders, almost 200 times the norm for a new ETF. Hedge funds (25%) and investment advisors (60%) complete the top three. Bloomberg ETF analyst Eric Balchunas wrote on X that it’s impossible. Large buyers knew what hedge funds were doing.
Bracebridge Capital recently invested heavily in Ark Invest’s ARKB, BlackRock’s IBIT, and Grayscales’ GBTC bitcoin ETFs. On March 31, it held $434 million in spot bitcoin ETFs. On Tuesday, the State of Wisconsin Investment Board announced a $163 million Grayscale and BlackRock spot bitcoin ETF investment. This week, Bitwise CIO Matt Hougan dubbed spot bitcoin ETF allocations a “down payment.” The SEC 13F filings showed them.
Late Thursday, 563 official investment firms held $3.5 billion in Bitcoin ETFs. Hougan called new exchange-traded fund investments “off the charts. By May 15, 700 professional firms may be registered. Hougan predicted AUM will exceed $5 billion. Fidelity’s FBTC received $131.3 million of the $330 million net inflow on Wednesday. Bitcoin finished 8% higher, according to The Block’s price website. Yesterday, Ark Invest and GBTC valued ARKB at $66,000.Grayscale received $38.6 million and $27 million net inflows.
