Morgan Stanley’s Bitcoin ETF holdings surge to $272.1M amid rising crypto demand

Wall Street titan Morgan Stanley has significantly ramped up its exposure to Bitcoin, with its Bitcoin ETF holdings now exceeding $272.1 million. This marks just over two months since the investment powerhouse began providing its clients with indirect exposure to Bitcoin via ETFs. 

Currently, these holdings represent 0.02% of the firm’s overall $1.2 trillion in assets under management.

Morgan Stanley urges CIOs to invest in Bitcoin mining stocks

Just recently, Morgan Stanley empowered thousands of its financial advisers to offer eligible clients the opportunity to invest in spot Bitcoin ETFs. This followed the SEC’s approval of spot Bitcoin ETFs earlier this year, which prompted financial institutions to rush to capitalize on the increasing demand for cryptocurrency investments. Consequently, inflows into Bitcoin ETFs have exceeded expectations.

The firm’s global head of research recently highlighted Bitcoin mining stocks as a promising new investment avenue for CIOs. These investments could harness long-term growth opportunities associated with innovations in energy sources, ranging from natural gas to nuclear power. VanEck head of digital assets research Mathew Sigel shared this in a social media post on Oct. 14.

Morgan Stanley's Global Head of Research is Pitching #Bitcoin Mining Stocks to CIOs 👍 pic.twitter.com/cVcRWdPfKJ

— matthew sigel, recovering CFA (@matthew_sigel) October 14, 2024

The suggestion, which was part of a recent briefing given to CIOs of significant asset management companies, emphasized how future regulations requiring data centers to add more power generation could increase demand for energy-intensive sectors like Bitcoin mining.

According to the paper, there is a possibility that similar regulations would extend to other regions, which would increase the opportunities for new investments in nuclear power and natural gas-fired plants.

JPMorgan predicts major crypto growth by 2025 

Meanwhile, other financial institutions are also bullish on cryptocurrency. JPMorgan, for example, predicts robust growth for Bitcoin and stablecoins by 2025, citing potential regulatory changes and geopolitical factors as drivers. Analysts have even speculated that a Donald Trump presidency could lead to a surge in Bitcoin demand as investors seek to hedge against currency debasement. 

JPMorgan’s analysts pointed out that most of the liquidations tied to the Mt. Gox and Genesis bankruptcies and the German government’s Bitcoin sale are essentially over. These developments, combined with growing institutional interest, suggest a positive outlook for the cryptocurrency market.