What’s next for bitcoin’s prices? Wall Street is piling into bitcoin with investment bank giant Morgan Stanley adding GBTC holding in the third quarter. Morgan Stanley doubling down on bitcoin and GBTC may be the signal for bitcoin’s prices.
Wall Street giant Morgan Stanley has revealed some of its institutional funds added bitcoin (BTC) exposure. Those include Morgan Stanley’s Growth Portfolio Fund. As of the end of the third quarter, Morgan Stanley held 3,642,118 shares of GBTC. At the current market price, the value of the newly added GBTC shares is more than $120 million.
Morgan Stanley CEO James Gorman said he didn’t think that crypto is a fad. The Wall Street bank giant is open to helping clients in trading crypto assets.
According to a Morningstar report, as of September, ARK Invest is the fund that holds the most GBTC shares. Ark Invest holds over US$370 million in GBTC shares through funds such as ARK New Generation Internet ETF (ARKW).
Currently, popular bitcoin investment products include GBTC and Bitwise’s bitcoin trust fund. With over $36.7 billion, Grayscale’s GBTC is designed to be directly linked to bitcoin’s spot price.
Better Investment: Bitcoin Trust GBTC VS Bitcoin Futures ETF?
However, only qualified investors can invest in trust fund products, which are available for trading in over-the-counter (OTC) desks. Moreover, GBTC charges investors a 2% management fee. Also, due to the limitation of trust funds, GBTC’s prices cannot accurately reflect bitcoin’s spot price. Therefore, GBTC’s return has lagged the spot in the year.
In October, the U.S. Securities and Exchange Commission (SEC) approved ProShares to launch the first Bitcoin futures ETF. It charges investors about 95 basis points (bps) in fee, which is much lower than that of GBTC.
Additionally, one week after ProShares’ bitcoin futures ETF listing, Valkyrie also has its bitcoin futures ETF approved and listed.
To compete against bitcoin futures ETFs, Grayscale is applying to the SEC to turn GBTC into ETFs for retail investors. However, the SEC has never approved any bitcoin spot ETFs for listing.
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