Morgan Stanley (NYSE:MS) has declared a substantial $269.9 million investment in spot Bitcoin (CRYPTO: BTC) ETFs through Grayscale's (OTC:GBTC) in their first quarter 13F filing.
What Happened: This significant move positions Morgan Stanley as one of the top holders of GBTC, trailing only behind Susquehanna International Group, which leads with a $1.0 billion investment according to Fintel data, Cryptoslate reported.
Morgan Stanley is among several Global Systemically Important Banks (G-SIBs) that have ventured into Bitcoin ETFs.
Other prominent banks making similar disclosures include the Royal Bank of Canada, JP Morgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), BNP Paribas (OTC:BNPQF), and UBS (NYSE:UBS), highlighting a growing trend of institutional interest in the cryptocurrency market.
Broader Institutional Participation
The investment wave doesn't stop there.
On May 14, Pine Ridge Advisers, a New York advisory firm, reported a $205.8 million investment in spot Bitcoin ETFs, allocated across BlackRock's (NASDAQ:IBIT) ($83.2 million), Fidelity's (BATS:FBTC) ($93.4 million), and Bitwise's (NYSE:BITB) ($29.3 million).
Boothbay Fund Management, a hedge fund manager also based in New York, disclosed a substantial $377 million exposure to spot Bitcoin ETFs.
Their investments include $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB.
Additional disclosures came from Aristeia Capital, which invested $163.4 million in IBIT on May 15.
Connecticut-based Graham Capital Management reported $98.8 million in IBIT and $3.8 million in FBTC.
Hedge fund manager CRCM LP disclosed a $96.6 million stake in IBIT.
Furthermore, Fortress Investment Group LLC revealed a $53.6 million investment in IBIT.
A Historical Scale Of Investment
These filings arrive just as the deadline for first-quarter 13F reports passes, marking a pivotal moment as this was the first quarter investors could broadly purchase spot Bitcoin ETFs.
Matt Hougan, CIO of Bitwise, commented on the surge of institutional filings, estimating that nearly 700 professional firms would have invested almost $5 billion by the May 15 deadline.
Hougan described this trend as reaching a "historical scale of professional investor ownership," likening it to the launch of gold ETFs in 2004, which was previously considered the most successful ETF launch.
Despite this influx of institutional money, Hougan noted that retail investments still constitute the majority of the $50 billion in assets under management (AUM) in spot Bitcoin ETFs.
"Retail investors remain the largest contributors, demonstrating the widespread interest and confidence in Bitcoin ETFs," Hougan observed.
Additionally, Millennium Management disclosed a significant ~$2 billion holding in Bitcoin ETFs as of Q1, which represents 3% of their $64 billion fund.
This inclusion underscores the substantial scale at which institutional investors are committing to digital assets.
The ongoing developments in the crypto space are set to be a major focus at Benzinga's Future of Digital Assets event on Nov. 19.
This event will delve into the evolving digital asset landscape and the growing role of institutional investments, providing insights into what lies ahead for the cryptocurrency market.
