Morgan Stanley holds more than 1 million shares of Grayscale Bitcoin Trust. Can it trigger a new wave of Bitcoin adoption?

According to documents filed with the U.S. Securities and Exchange Commission (SEC), as of June 30, 2021, more than 30 portfolio funds under banking giant Morgan Stanley held more than 1 million shares of Grayscale Bitcoin Trust (GBTC).

The largest seems to be Morgan Stanley Insight Fund, which owns more than 928,051 GBTC, worth about $36 million or more than 700 bitcoins. Morgan Stanley Institutional Fund, Morgan Stanley Institutional Trust Fund, Morgan Stanley Variable Insurance Fund, etc. also hold a large number of GBTC shares.

In March, Morgan Stanley became the first major U.S. bank to offer its wealthy clients access to a bitcoin fund. The move was a major step in Wall Street’s acceptance of bitcoin as an asset class and came after Morgan Stanley’s clients requested exposure to the cryptocurrency.

In April this year, Morgan Stanley submitted another document to the SEC to gain exposure to Bitcoin. According to the document, 12 Morgan Stanley investment funds will allocate funds in Bitcoin financial products. These funds will be able to invest in cash-settled Bitcoin futures contracts or GBTC shares offered by Grayscale.

In addition to holding a large position in the Grayscale Bitcoin Trust, Morgan Stanley has also been investing in crypto-based companies.

Additionally, the bank is a major investor in a crypto company backed by Coinbase. Morgan Stanley led a $48 million Series B round for blockchain company Securitize.

Wells Fargo, JPMorgan Chase, Goldman Sachs, and other major US banks seem to want to expand their Bitcoin exposure through different investments.

Morgan Stanley’s filing today could spark a new wave of Bitcoin adoption.