Morgan Stanley Announces Bitcoin (BTC) Exposure for Handful of Mutual Funds

UTC by Bhushan Akolkar · 2 min read
Morgan Stanley Announces Bitcoin (BTC) Exposure for Handful of Mutual Funds
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Morgan Stanley said that nearly 12 of its mutual fund’s portfolios will get Bitcoin exposure either through cash-settled futures or via Grayscale.

On Thursday, April 1, banking giant Morgan Stanley announced updating the “Investment Policies and Strategies” section for 12 of its mutual funds. This update from Morgan Stanley comes in an attempt to accommodate Bitcoin (BTC) as part of the portfolio. The banking giant has also made the disclosure in its March 31st filing with the US Securities and Exchange Commission (SEC).

Morgan Stanley said that all of its selected mutual funds will get Bitcoin exposure either through cash-settled futures or via Grayscale. The SEC filing from Morgan Stanley notes:

“Certain Funds may have exposure to bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent a Fund invests in bitcoin futures or GBTC, it will do so through a wholly-owned subsidiary, which is organized as an exempted company under the laws of the Cayman Islands (each, a “Subsidiary”). A Fund may at times have no exposure to bitcoin.”

The list of Morgan Stanley’s mutual fund portfolios to gain exposure to BTC include:

  • Advantage Portfolio
  • Asia Opportunity Portfolio
  • Counterpoint Global Portfolio
  • Developing Opportunity Portfolio
  • Global Advantage Portfolio
  • Global Permanence Portfolio
  • The Global Opportunity Portfolio
  • Growth Portfolio Inception Portfolio
  • International Advantage Portfolio
  • International Opportunity Portfolio
  • Permanence Portfolio

Morgan Stanley Raising the Bar for Institutional BTC Adoption

The latest move from Morgan Stanley has certainly raised the bar for institutional adoption of Bitcoin (BTC). Possibly, other mutual funds services providers will also join in offering Bitcoin exposure.

Morgan Stanley also noted that all of the 12 funds mentioned can “invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands”. However, due to these funds’ “aggressive risk tolerance” Morgan Stanley has decided to limit their access only to wealthy clients.

Thus, to qualify, the clients need to have a minimum of $2 million in asset deposits with the firm. On the other hand, investment firms need to have a minimum of $5 million. Morgan Stanley’s announcement comes just a day after Goldman Sachs said it will offer BTC and crypto investment options to its wealth management clients.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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