29.11.2021

Morgan Stanley Bank Increases Investment In The Cryptocurrency Industry

Morgan Stanley, one of the largest banks in the United States of America, has increased its investment in the Grayscale Bitcoin Trust. This became known after the publication of documents submitted by the bank to the Securities and Exchange Commission (SEC).

At the moment, there is information that the Morgan Stanley Insight Fund holds at least 928,051 units of the trust . Since each share is equal to 1/1000 of the value of one BTC , in cryptocurrency equivalent, the bank can earn on the price movement of almost a thousand bitcoins.

Note that not all banks are distinguished by a friendly attitude towards digital assets. For example, in the second half of August, it became known about the closure of accounts of Compass Mining, which deals with the acquisition and maintenance of Bitcoin miners for clients. This was done by representatives of JP Morgan.

At the same time, OnlyFans platform also reported problems with banks and threats of blocking. As the CEO of the service Tim Stokely said, the representatives of financial institutions argued their decision by unwillingness to risk their own reputation. And such a case opens up even greater opportunities for decentralized cryptocurrencies.

Cryptocurrency is taking over banks

According to CryptoPotato, at least four different Morgan Stanley funds have invested in Grayscale investment vehicles. Insight Fund has invested $ 27.6 million , which sounds pretty impressive. However, in reality, this is only a tiny fraction of the total amount of funds managed by the fund – it is about 0.34 percent .

Note that the purchase of shares in Grayscale cryptocurrency trusts does not really count as a direct investment in cryptocurrencies. The fact is that in this case, the investing companies do not own digital assets, but rather receive a kind of certificate for a certain share in the trust. Plus, they don’t have to worry about the security of their digital assets – Grayscale does it for them. Most importantly, this is one of the few ways to officially buy large amounts of cryptocurrencies in the United States.

As it became known in July, Grayscale plans to add tokens from the decentralized finance industry to its portfolio. Accordingly, in the future, the company’s customers will also be able to invest in blue chips of the DeFi world, such as coins from the Uniswap, Aave, Sushiswap platforms, and so on.

Morgan Stanley Bank Investments

Morgan Stanley Bank

At the same time, Morgan Stanley is gradually increasing its appetites in the crypto market: back in June of this year, it became known that some categories of the bank’s clients would have access to investments in cryptocurrency funds. With this strategy, the management of the financial institution makes it clear that the bank will not miss the opportunity to capitalize on the current bull run of the cryptocurrency market.

Note that this option corresponds to the version of some analysts who predict the connection of large banks to the cryptocurrency trend.

In addition to organizations, large individual players like billionaire Simon Nixon, founder of the Moneysupermarket platform, are also interested in the future of Bitcoin. On the eve of the managing director of the Nixon investment firm Seek Ventures, Adam Proctor noted that “the billionaire is looking for ways to increase the volume of investments in crypto, as he considers it an important area of ​​development in the future . “

Simon Nixon Billionaire Bitcoin

Billionaire Simon Nixon

As you can see, the growth in BTC adoption has only accelerated over the past few weeks. The rapid market collapse after the May correction spurred the interest of the “market sharks” in the crypt and now they are ready to spend even more to buy bitcoins “cheaper”. This strategy is very profitable: it is possible that in the coming months the price of the main cryptocurrency will reach a new all-time high. At least this scenario was previously voiced by the CEO of the investment firm Capriole Charles Edwards. It will be possible to get acquainted with his point of view in a separate article.

We believe that the trend of participation of banks and other representatives of the traditional niche of finance in the world of cryptocurrencies will develop further. Obviously, the rest of the banks also do not want to pass by the opportunity to earn money. Moreover, we are talking not only about cryptocurrency price movements, but also the possibility of receiving commissions for operations with coins for its users. This means that in the future, we can most likely expect the possibility of purchasing a crypt in banks – this version is adhered to by analysts.

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