In yet another bullish announcement for Bitcoin this week, banking giant Morgan Stanley has filed a with the Securities and Exchange Commission (SEC) to gain exposure to BTC. Per the document, 12 of Morgan Stanley’s investment funds will allocate capital in BTC financial products.
Morgan Stanley’s investment funds eligible to gain indirect exposure to Bitcoin include Counterpoint Global Portfolio, managed by Dennis Lynch, Asia Opportunity Portfolio, Growth Portfolio, Inception Portfolio, International Advantage Portfolio, among others.
The funds will be able to invest in Bitcoin futures contracts settled in cash or Grayscale Bitcoin Trust (GBTC) shares of the Grayscale firm. Investment in BTC will not have to be ongoing and will be made through a subsidiary that will operate as an exempted company governed by the laws of the Cayman Islands.
The document states that investment in Bitcoin futures may change if regulations on the underlying asset change. In addition, Morgan Stanley states that these financial derivatives have a relatively small trade with other futures and may be subject to manipulation.
On its possible GBTC holding, Morgan Stanley rates fluctuations in the fund’s premium as one of its potential investment risks. It has “historically” traded at a premium or discount to the price of BTC. In fact, during the entire month of March, the GBTC premium turned negative and reached a low of approximately -10%, as research firm Skew registers. Morgan Stanley’s document claims:
To the extent GBTC trades at a discount to NAV, the value of a Fund’s investment in GBTC would typically decrease, even if the value of GBTC’s underlying holdings in bitcoin does not decrease.
The series of announcements from giants such as Goldman Sachs, Morgan Stanley, PayPal, and BlackRock making an expansion of their bet on Bitcoin or an entry into the crypto market seems to be rooted in the current macroeconomics conditions.
Along those lines, Senior Commodity Strategist for Bloomberg, Mike McGlone, stated that there is a “Commodity supercycle happening in Bitcoin.” This is due to the trend towards digitalization that exists in the world which has been exacerbated by the Covid-19 pandemic.
McGlone highlighted that BTC as a store of value is a solution that, for the first time in history, allows people to store, trade, transport, and transmit wealth with ease all year round. The analyst believes that the world has entered a “paradigm shift” and a situation of “falling dominoes.” McGlone :
Any investor on the planet who has 100 units of any type of asset knows now that if they don’t allocate at least 1 or 2 of those units to Bitcoin, they are at greater of this digital global reserve asset just continue to do what’s been doing becoming the world’s benchmark digital global reserve asset (and missing it).
BTC is trading at $58,297 and has been moving sideways in the 24-hour chart. On the weekly chart, the benchmark cryptocurrency has gains of 11.4% and 17.5% in the monthly chart.
A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.
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