Morgan Stanley Seeks SEC Approval for Bitcoin ETF Exposure in Funds

Morgan Stanley has filed with the SEC to gain Bitcoin ETF exposure for 12 of its funds, enabling indirect investment in Bitcoin. The move restricts the investment amount within certain limits and acknowledges the risks associated with Bitcoin ETF investments. Notably, Morgan Stanley could potentially allow its brokers to solicit purchases for Bitcoin ETFs, which could boost demand for these products.

Morgan Stanley Files with SEC for Bitcoin ETF Exposure in Funds

Investment banking giant Morgan Stanley has submitted a filing with the U.S. Securities and Exchange Commission (SEC) seeking approval to provide Bitcoin exchange-traded fund (ETF) exposure to 12 of its investment portfolios. The move signifies the continued interest and adoption of cryptocurrencies by institutional investors.

The filing discloses that the Advantage, Asia Opportunity, Counterpoint Global, Developing Opportunity, Global Insight, Global Opportunity, Global Permanence, Growth, Inception, International Advantage, International Opportunity, and Permanence Portfolios may gain indirect investment exposure to Bitcoin through investments in Bitcoin ETFs. However, the filing stipulates that the amount of investments in Bitcoin ETFs will be subject to "certain limits" to manage risk.

Morgan Stanley acknowledges the potential risks associated with investing in Bitcoin ETFs, emphasizing that the risks are comparable to those of investing directly in Bitcoin itself. The filing states that "investments in a Bitcoin ETF expose a Fund to all of the risks related to bitcoin discussed above and also expose a Fund to risks specific to such Bitcoin ETF."

The news comes on the heels of a report from AdvisorHub last week that Morgan Stanley is considering allowing its brokers to solicit purchases of Bitcoin ETFs, which are currently only available on an unsolicited basis. This move, if approved, could significantly increase demand for Bitcoin ETFs.

Despite the recent decline in Bitcoin ETF flows, prominent brokerage firm Bernstein remains bullish on Bitcoin. The firm has maintained its optimistic price target of $150,000 for Bitcoin by next year, attributing the recent outflows to a temporary pause.

Morgan Stanley's filing with the SEC underscores the growing acceptance and adoption of cryptocurrencies by traditional financial institutions. The approval of Bitcoin ETFs would provide investors with a more convenient and regulated way to gain exposure to Bitcoin and other digital assets. As the regulatory environment surrounding cryptocurrencies continues to evolve, it is likely that more institutions will seek to offer Bitcoin ETF products to their clients.