A new report reveals that Morgan Stanley is accelerating its efforts to engage in the cryptocurrency industry. A CNBC report states that the Wall Street firm is offering its high-end clients access to three funds that provide exposure to Bitcoin. The report cites an internal memo and unnamed people as the sources of the latest news.
Morgan Stanley’s crypto ventures – Last month, Cryptohopper reported that Morgan Stanley’s $150 billion investment arm, Counterpoint Global, was considering investing in Bitcoin and other cryptocurrencies. Earlier this month, the $4 trillion firm joined a $200 million investment in Bitcoin firm NYDIG. Morgan Stanley also holds a major stake in MicroStrategy, which now holds more than 72,000 Bitcoins.
Exposure to Bitcoin
CNBC’s report reveals that this latest move is due to Morgan Stanley clients’ increasing demand for exposure to Bitcoin. The report details involvement with three funds: two of the funds are from Galaxy Digital and the third is a joint effort from FS Investments and NYDIG.
Morgan Stanley has restrictions in place to limit risk – participating firms must comply with restrictions, including at least $5 million at the bank in order to qualify for exposure to these funds. Additionally, it is limiting its exposure to Bitcoin investments to 2.5% of the firms’ total net worth.
Bottom line – The move directly correlates to the rise in institutional client’s demand towards exposure to cryptocurrency investments.
Crypto, IT & Cloud 