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Morgan Stanley Joins Roster, Reveals Spot Bitcoin ETF Holdings for Clients

In this post:

  • Morgan Stanley reported holding $269.9 million in Grayscale’s Bitcoin Trust as of March 31.
  • Other major banks like JPMorgan, Wells Fargo, and UBS also disclosed investments in spot BTC ETFs in the first quarter.
  • These investments are primarily for wealth management clients or for market making and ETF participant duties.

Morgan Stanley now controls a huge $269.9 million in Grayscale’s Bitcoin Trust as recorded on March 31, a disclosure made in a 13F filing.

Not alone in this venture, other financial titans like JPMorgan, Wells Fargo, and UBS have also stepped up, showing their own slices of the spot Bitcoin ETF pie during this year’s first quarter.

Opening the Gates to Bitcoin ETFs

These huge purchases, however, aren’t necessarily a signal of these banks betting on BTC’s price trajectory.

Source: SEC Filing

Instead, they mostly represent transactions made on behalf of wealth management clients or are part of essential activities such as market making or fulfilling duties as ETF authorized participants.

In a strategic move post-approval in January, Morgan Stanley unlocked the opportunity for its clients to invest in spot Bitcoin ETFs.

This opportunity, however, comes with a catch. It’s only available unsolicited, meaning clients need to step up and request these investments themselves.

U.S. Companies Are Really into Crypto ETFs

The interest in Bitcoin isn’t just a flash in the pan but is gaining serious traction. According to recent figures, nearly 1,000 U.S firms have now dived into buying Bitcoin ETFs, showcasing the growing institutional appetite for cryptocurrency investments.

Recent data from Santiment, posted on Twitter, highlighted an explosive trend in the cryptocurrency market. On May 16, daily trading volumes for spot Bitcoin ETFs soared past $5 billion.

Source: Santiment

ETFs See Surge in Trading Volumes

This peak is part of a broader surge that saw the seven largest U.S. spot Bitcoin ETFs handle a combined total of $5.65 billion in one day—the most robust performance since March 24.

Santiment’s commentary sheds light on the market dynamics. Gone are the days of whales only accumulating on-chain, indicating a change towards more diverse and active trading patterns.

The market momentum is described as “picking up major steam,” an opinion echoed by the continuous positive inflows into these ETFs as observed throughout May.

Moreover, even the Grayscale Bitcoin Trust, which had been noted for its massive outflows in the past, is seeing a reversal in fortunes.

On May 16 and 17, the trust attracted $27 million and $4.6 million, respectively, signaling a renewed interest from investors, as reported by a UK-based investment firm Farside.

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DisclaimerThe information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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