Top U.S. Bank Backs BlackRock’s Bitcoin ETF, Drops Grayscale Trust

Morgan Stanley has revealed a substantial investment of $187.79 million in BlackRock’s iShares Bitcoin Trust, according to its recent Form 13F filing with the U.S. Securities and Exchange Commission.

As of June 30, 2024, the bank held over 5.5 million shares in this spot Bitcoin ETF, making it one of the top five shareholders. Additionally, Morgan Stanley has acquired 26,222 shares of the ARK 21Shares Bitcoin ETF, valued around $1.57 million, down from $2.3 million at the end of Q1 2024.

The filing also shows a significant decrease in Morgan Stanley’s position in the Grayscale Bitcoin Trust, which has dropped to approximately $148,000 from nearly $270 million previously, suggesting a near-total divestment from GBTC.

Form 13F reports, required by the SEC from institutional managers with at least $100 million in assets, provide insights into stock holdings but exclude short positions.

The iShares Bitcoin Trust remains the largest spot Bitcoin ETF by market cap, managing $20 billion in assets. Goldman Sachs recently disclosed a notable investment in the same ETF, with 6.9 million shares worth $238.6 million.

Overall, Morgan Stanley’s total investment in spot Bitcoin ETFs reached around $190 million by the end of Q2 2024, indicating a shift in its cryptocurrency investment strategy.