Wall Street giant Morgan Stanley’s Bitcoin exchange-traded fund currently has close to $400 million in assets under management, despite only launching in April.
The NYSE Arca exchange-traded fund, the bank’s first publicly traded fund, has received a strong response, attracting more than $33 million in new cash since its first day of launch.
The fund now has over $391 million in assets, a testament to the product’s popularity. Many ETFs never reach $400 million in asset value, let alone in one quarter.
Bloomberg Intelligence ETF analyst Eric Balchunas said Friday that the product was one of the most successful funds launched so far this year.
This week alone, investors poured $15.7 million in new cash into the product, according to Farside Investors data.
Morgan Stanley has been making big cryptocurrency moves for several years. Starting in 2021, funds such as Galaxy Digital began offering Bitcoin exposure to wealthy clients.
And last year, the bank’s CEO and chairman, Ted Pick, said the bank was working with regulators to figure out how it could safely offer cryptocurrencies.
In April, the bank’s head of digital assets, Amy Oldenburg, said customer education, not product design, was the main challenge facing Bitcoin adoption.
ETF action this week
After weeks of outflows and careless price action, the US Bitcoin ETF has gained new cash over the past seven days.
Farside Investors said the product had received a total of $274 million in new investment so far this week.
The fund has been on a winning streak, taking in nearly $1 billion in the seven days through Thursday. There was an outflow from all ETFs except Morgan Stanley’s products.
Bitcoin price recently traded at $64,096, down more than 1% in the last 24 hours. Cryptocurrencies remain virtually static for 7 days.
Last week, European asset management firm CoinShares said investors were back pumping fresh cash into Bitcoin ETFs, but other factors could hinder the digital asset market’s rise.
“I don’t see much upside potential here,” wrote James Butterfill, head of research at CoinShares.