Morgan Stanley buys $1.5 trillion U.S. spot Bitcoin ETF.

Recent 13F SEC filings reveal that several major US financial institutions are allocating significant funds to Bitcoin through spot ETFs. The filing disclosed the holdings of institutional investors with an allocation of more than $100 million.

After the SEC approved several spot Bitcoin ETFs earlier this year, investors have been eagerly awaiting these disclosures. The filing names the State of Wisconsin Investment Board, Wells Fargo, JPMorgan and others.

Now, the latest disclosure shows that financial services giant Morgan Stanley has purchased $269.9 million worth of Grayscale GBTC. This makes Morgan Stanley one of the largest institutional holders of GBTC, outside of Susquehanna’s $1.8 billion position.

NEW: $1.5 trillion Morgan Stanley says it has a position. #Bitcoin ETF exposure in SEC filings 🙌 pic.twitter.com/tRAznuHHRF

— Bitcoin Magazine (@BitcoinMagazine) May 17, 2024

With over $1.5 trillion in assets under management, the allocation signals the Wall Street giant’s growing confidence in Bitcoin’s role in its portfolio.

It joins other major banks such as JP Morgan, BNP Paribas, and Royal Bank of Canada that have disclosed purchases of spot Bitcoin ETFs.

There has been a broader shift towards embracing Bitcoin exposure, despite some companies, such as Vanguard, opposing it. Customers are demanding access to Bitcoin’s growth prospects as an inflation hedge and alternative asset class.

Old expense banks consistently allocating to Bitcoin ETFs represent a monumental shift. Morgan Stanley’s acquisition follows executives speaking positively about Bitcoin’s potential. Although still a small portion of AUM, this shows that legacy finance recognizes the value of Bitcoin.

The interest of major traditional institutions in Bitcoin has made it possible for accessible ETFs to get their feet wet. The Q1 disclosures provide tangible evidence that these giants are acting to increase confidence in Bitcoin’s staying power.