Morgan Stanley, the leading global investment bank, is providing some of its clients access to Bitcoin funds. Those eligible are wealthy clients who meet the requirement of a $2million mark. The Bitcoin funds to which clients are given exposure to are two funds from Galaxy Digital, owned by the wealthy crypto investor, Mike Novogratz, and one other fund resulting from the collaboration between FS investments and NYDIG. This was revealed in a publication circulated by Morgan Stanley yesterday. According to BlackRock’s Chief Investment Officer, Morgan Stanley is also trying to enter into the crypto market through Bitcoin offerings. He added that Goldman Sachs is on track to relaunch its crypto trading desk and return to Bitcoin futures dealing.
Only Wealthy Individuals and Businesses Can Meet the Requirements
Any intending person must invest at least $25,000 to be eligible for Galaxy Bitcoin Fund LP and $5 million for Galaxy Institutional Bitcoin Fund LP. At the same time, an investment with the FS NYDIG requires a minimum of $25,000 However, an investor must have up to a $2 million balance in the bank to participate in this investment initiative. Plus, the highest a client can invest in the fund Is 2.5% of their worth.
Apart from Morgan Stanley, many other banks have closely monitored the crypto market, especially Bitcoin, since the start of the crypto boom late last year. Early last year, Bitcoin sold for just $4,000 but has kept soaring since then until it hit $61,000 the previous weekend. At the time of writing this report, Bitcoin is trading at $55,000.
Recently, JP Morgan launched a crypto exposure market to enable investors to trade in stocks of firms like Square and MicroStrategy that have considerable investments in cryptocurrencies. In December 2020, Morgan Stanley purchased 10% of MicroStrategy stock, which has invested over $5 billion in Bitcoin
JP Morgan Advisors Can’t Invest Directly in Bitcoin
From April, clients who are interested in the offer can start investing in it. By then, JP Morgan’s advisors will have been through with the training programs on the offer. Right now, the three giant banks– JP Morgan, Goldman Sachs, and Bank of America have not yet granted their advisers the freedom to provide direct Bitcoin investment services.
Morgan Stanley’s 10% investment in MicroStrategy on the 31st of December, 2020, enables the investment bank to profit from the bullish Bitcoin move. Meanwhile, MicroStrategy’s CEO has been a vocal Bitcoin advocate, urging investors to take advantage of the digital asset’s boom. It is widely believed that the $1 billion which Saylor invested in Bitcoin last year led to bullish momentum bet Bitcoin has been making since last year.
Morgan Stanley’s 10% investment in MicroStrategy on the 31st of December, 2020, enables the investment bank to profit from the bullish Bitcoin move. Meanwhile, MicroStrategy’s CEO has been a vocal Bitcoin advocate, urging investors to take advantage of the digital asset’s boom. It is widely believed that the $1 billion which Saylor invested in Bitcoin last year led to bullish momentum bet Bitcoin has been making since last year.
Since the third quarter of 2020, Morgan Stanley had added to its investment in MicroStrategy by almost five times its initial investment, suggesting that the investment bank is very confident in MicroStrategy, which came into the limelight in August 2020 when it invested about $250 million in Bitcoin.