HomeCrypto NewsMorgan Stanley invested $200 million in bitcoin

Morgan Stanley invested $200 million in bitcoin


The American bank Morgan Stanley, which manages more than 1 billion (trillionin English) of dollars in assets under management, revealed having invested in the bitcoin exchange-traded fund (ETF) Grayscale Bitcoin Trust (GBTC).

Morgan Stanley has purchased more than 4 million GBTC shares which, at the time of this publication, are equivalent to approximately 243 million dollars. If you convert this figure to BTC, it is as if you had purchased around 3,700 bitcoin.

This investment was evident when a presentation made by the banking institution before the US Securities and Exchange Commission (SEC).

As CriptoNoticias has reported, There are several banks that are investing in bitcoin ETFs. The fact is striking if one takes into account that, years ago, banking institutions declared themselves staunch enemies of BTC. Among the banks that have entered bitcoin through ETFs are JP Morgan, Wells Fargo and BNP Paribas.

The phenomenon begins to expand outside the United States. Canadian banks Scotia Bank and Toronto Dominion Bank, for example, have exposure to bitcoin ETFs. The first of them has bought shares of the ETFs issued by BlackRock (IBIT), Grayscale (GBTC) and Fidelity (FBTC); while the second has bought IBIT shares.

Institutional adoption will impact the price of bitcoin

Due to the operation of ETFs spot (in cash), the companies issuing these funds must buy bitcoin to support them. This, by simple law of supply and demand, causes the price of bitcoin to rise if demand increases greatly. Therefore, giant institutional investors putting money into these ETFs ends up being bullish for the price of the digital currency.

As can be seen in the following graph of TradingViewbitcoin has been in a downward trend since reaching its all-time high in March, above $74,000.

Bitcoin price with candles on a daily basis. Source: TradingView.

Perhaps, this wave of institutional and corporate adoption is what causes bitcoin to break this mini-downtrend and resume your course towards new heights.


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