Banking giant with $6.5 trillion in assets now owns Bitcoin and drives adoption with Blackrock

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Banking giant Morgan Stanley has allocated $3.6 million to Grayscale Bitcoin Trust (GBTC). Bitcoin betting shows a growing trend among major financial companies, including BlackRock.

The American multinational banking giant, Morgan Stanley, has added Bitcoin (BTC) as one of the assets it manages for its clients. As reported by Trust Nodes, the banks’ investment in Bitcoin was made through its Europe Opportunity Fund with a direct investment in Grayscale Bitcoin Trust (GBTC).

According to the company’s filing, its total investment in GBTC came to $3.6 million, a purchase that comes at a time when the broader crypto market is struggling to regain its long-lost luster.

The Fund may, in accordance with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund,

he says, adding,

The Subsidiary may invest in bitcoin indirectly through cash-settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) (GBTC), a private investment vehicle that invests in bitcoin.

Investing in Bitcoin directly or indirectly is not an everyday occurrence in banking. While many banks, like for example Morgan Stanley, are now gearing up for crypto and blockchain-related offerings, their role has been strict in offering services on the edge of OTC trading and crypto custody, among others.

Investing in GBTC is a show of confidence in Bitcoin, as Grayscale is known to invest capital made from investors to directly hold Bitcoin in cash. With this push from Morgan Stanley, a new frontier has been unleashed that is helping the banking giant establish itself as one of the first big pioneers in the nascent world of crypto.

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While Morgan Stanleys Europe Opportunity Fund is known for investing in UK, Italian, French, Swiss and Dutch stocks, investing in Bitcoin is considered a very essential avenue to diversify one’s holdings.

The company reiterated that its objective of betting on Bitcoin is to maximize capital appreciation by investing primarily in high-quality established and emerging companies located in Europe which the investment team believes are undervalued. at the time of purchase.

Banking giant walking the way to BlackRock

Investing in Grayscale Bitcoin Trust and by extension Bitcoin is seen as a growing trend and a vote of confidence in determining the future of the premier cryptocurrency. In what now appears to be a trend, BlackRock, arguably the largest investment management company in the world, has also added Bitcoin to its $15 trillion global allocation fund.

Unlike Morgan Stanley which invested indirectly, BlackRocks’ investments would be made directly into the coin.

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The duo of BlackRock and Morgan Stanley plays a very central role in the adoption of Bitcoin on Wall Street. While Nasdaq-listed MicroStrategy currently ranks as the largest corporate accumulator of digital currency, investments from BlackRock and Morgan Stanley will provide a more recognized vote of confidence for the asset class than MicroStrategys.

The cryptocurrency has maintained its rally since news broke of the announcement of the Morgan Stanley acquisition and it is currently trading at $17,454.32, up 1.09% in the past 24 hours.

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