Morgan Stanley is a leading investment multinational in the world, with more than 6 trillion dollars in assets under management, and recently revealed that it has invested more than $3 million through Grayscale Bitcoin Trust, a subsidiary of the investment fund.
From Morgan Stanley, in its annual report to shareholders show the inclusion in the investment portfolio of the main cryptocurrency in the market. The report explains that they may have indirect exposure to bitcoin through these investments in GBTC (Grayscale Bitcoin Trust), it also indicates that, according to its main investment strategies, the fund may invest up to 25% of its total assets in a subsidiary owned by the fundand taking into account that a close sale of the subsidiary is not foreseen, the decision was made to invest through Grayscale Bitcoin Trust and use it as a vehicle to reach futures settled in cash or in cryptocurrency.
In the explanation to the investors of the fund, it is shown that there is a clear warning about the risks that these investments containexplaining that “The value of the cryptocurrency is not endorsed by any identified government, corporation, or other body. Like fiat currencies (meaning a currency backed by a central bank or a national, supranational, or quasinational organization), cryptocurrencies are susceptible to theft, loss, and destruction. For example, bitcoin held by GBTC (and the Fund’s indirect exposure to such bitcoin) is also susceptible to these risks. The value of GBTC’s cryptocurrency investments is subject to fluctuations in the value of the cryptocurrency, which has been and may be highly volatile in the future. The value of cryptocurrencies is determined by the supply and demand for cryptocurrencies in the global market for cryptocurrency trading, which mainly consists of transactions on electronic exchanges.”.
The fund has a diverse portfolio of investments, primarily holding UK, French, Swiss and Dutch stocks. This is a strategy used by the company to maximize the appreciation of all the capital invested in companies with a long history and other emerging ones on European soil that, according to the analyzes prior to the purchase of the shares, are usually undervalued.
In this sense, the report shows that there is a “European Opportunity Fund”, which currently has about 120 million dollars to make investments. Of these 120 million, the fund has allocated 3% for the purchase of bitcoin, which translates into a total of $3,646,698 originally invested. However, market situations, have brought that value, at the close of October 31, 2022, to an amount of 1,005,636 dollars, thus representing 1% of the total amount of the European Opportunity Fund. This constitutes a loss of more than two million dollars due to fluctuations in the cryptographic market.
More and more investment funds are offering this portfolio to investors, BlackRock has also recently added bitcoin as a form of investment for its clients. This is possible thanks to the fact that spot ETFs have been added gradually in Europe and Canada.opening the ways so that cryptographic financial instruments can have a presence in the different traditional stock exchanges, and this has generated that various sectors enter the game.
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