Morgan Stanley investment banking company disclosed that as of June 30, 2024, it held around $188 million in shares of BlackRock’s iShares Bitcoin Trust (IBIT).
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on August 14, the report details that Morgan Stanley owns over 5.5 million shares of this Bitcoin-focused exchange-traded fund (ETF).
Morgan Stanley also reported smaller investments, each valued at under $300, in several other cryptocurrency-related funds. These include the Valkyrie ETF Trust, which has exposure to Bitcoin and Ethereum, the Fidelity Wise Origin Bitcoin Fund (FBTC), the ProShares Bitcoin Strategy ETF, and others.
Interestingly, these investments were made before Morgan Stanley announced that its financial advisers would soon be allowed to recommend Bitcoin ETFs to their clients. The firm highlighted IBIT and FBTC as key options for clients interested in cryptocurrency investments.
However, this decision has caught the attention of some experts, like former SEC official John Reed Stark, who suggested that Morgan Stanley might face intense regulatory scrutiny.
Stark warned that the investment firm could be subject to what he believes could become one of the largest SEC and FINRA examination sweeps in history.