Key Points
- Morgan Stanley has swapped its Bitcoin ETF portfolio, selling its entire GBTC position and buying $187 million of BlackRock’s IBIT.
- The banking giant also holds 26,222 shares of the ARK 21Shares Bitcoin ETF, valued at $1.57 million.
In the second quarter, banking giant Morgan Stanley made a significant shift in its Bitcoin ETF portfolio, according to the 13F filing submitted to the US Securities and Exchange Commission on Wednesday, August 14.
The 13F filings are reports submitted to the SEC by institutional investment managers with assets under management of at least $100 million. They provide a view of the managers’ stock holdings.
Morgan Stanley’s Investment in BlackRock’s Bitcoin ETF IBIT
Like Goldman Sachs, Morgan Stanley gained a substantial exposure of $190 million to BlackRock’s Bitcoin ETF IBIT during the second quarter of this year.
Morgan Stanley acquired more than 5.5 million shares of the iShares Bitcoin Trust (IBIT), making it one of the top five holders of IBIT.
In addition to BlackRock, Morgan Stanley also holds 26,222 shares of the ARK 21Shares Bitcoin ETF (ARKB) valued at $1.57 million. However, this is down from the $2.3 million allocation shown at the end of the first quarter.
Morgan Stanley’s Liquidation of GBTC Holdings
Morgan Stanley announced a near-selloff of its Grayscale holdings, liquidating a total of $269.9 million worth of GBTC shares which it held in Q1 2024. As a result, the company has a very minor exposure to GBTC around $148,000.
Since its inception in January, there have been massive outflows from GBTC owing to its high management fee of 2.5%, which is nearly 10 times that of its competitors. Meanwhile, inflows into BlackRock’s IBIT have surged past $20 billion making it one of the top Bitcoin ETFs in AUM.
On Wednesday, August 14, the US Bitcoin ETFs registered total outflows of $81.4 billion with Grayscale’s GBTC alone contributing to more than $56 million in outflows. Fidelity’s FBTC also recorded $18 million worth of outflows.
The Bitcoin price has also come under selling pressure falling 4.35% and now trading around $58,130 levels. This happens despite the US CPI data showing signs of cooling inflation. On the other hand, Defiance is planning to launch a 1.75x long MicroStrategy ETF.
