U.S. investment bank Morgan Stanley has updated the prospectus of several institutional funds to reflect potential exposure to Bitcoin (BTC) through grayscale and cash-offset futures, and again highlighted the rapid adoption of digital assets by major investment firms.
In a filing with the Securities and Exchange Commission (SEC) on March 31, Morgan Stanley stated that the “Investment Policies and Strategies” section has been updated for 12 institutional portfolios. The update enables Morgan Stanley Institutional Fund, Inc. to add bitcoin to multiple portfolios through Grayscale Bitcoin Trust and cash-settled futures.
The filing explains:
“If a fund invests in Bitcoin futures or GBTC, it will do so through a wholly-owned subsidiary that is organized as an exempt company under the laws of the Cayman Islands […] Sometimes a fund is not exposed to Bitcoin. “
The portfolios that could get exposure to BTC are:
- Advantage portfolio
- Asia Opportunity Portfolio
- Counterpoint global portfolio
- Develop opportunity portfolio
- Global portfolio of benefits
- Global persistence portfolio
- Global opportunity portfolio
- Growth portfolio
- Inception portfolio
- International portfolio of advantages
- International portfolio of opportunities
- Permanence Portfolio (each a “Portfolio”)
The rumble of an institutional Bitcoin offering at Morgan Stanley has gained momentum in recent weeks after an “internal memo” revealed the bank’s intention to offer crypto exposure to wealthy clients. Morgan Stanley has also been linked with Bithumb after reports that the bank had its eye on a large stake in the leading Korean stock exchange.
As Bloomberg reported in February, Morgan Stanley has even considered buying Bitcoin directly through its counterpart Global Investment Arm.