Morgan Stanley files to add bitcoin exposure across a dozen institutional funds

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Wall Street investment bank Morgan Stanley said in a Thursday regulatory filing that a number of its institutional funds may gain exposure to bitcoin in the form of cash-settled futures or a Grayscale's Bitcoin Trust.

The filing names twelve funds, including Counterpoint Global, which Bloomberg News reported was considering some kind of bitcoin investment or exposure strategy. 

As Thursday's filing 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 filing also indicates the degree to which each fund may gain exposure, suggesting as much as 25 percent of their respective assets could be put towards bitcoin products.

“Each of the Advantage Portfolio, Asia Opportunity Portfolio, Counterpoint Global Portfolio, Developing Opportunity Portfolio, Global Advantage Portfolio, Global Permanence Portfolio, Global Opportunity Portfolio, Growth Portfolio, Inception Portfolio, International Advantage Portfolio, International Opportunity Portfolio and Permanence Portfolio may, consistent with its principal investment strategies, 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," the filing states. "Each Subsidiary may invest in GBTC, cash-settled bitcoin futures and other investments."

Last month, Morgan Stanley revealed that it would begin offering its institutional private wealth clients access to bitcoin-related funds. At the same time, wealth management unit penned an investor note that made outlined a case for cryptocurrency as an emerging investable asset class, as previously reported. 

Hat tip MacroScope17

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May 5, 2022, 3:17PM UTC
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