Morgan Stanley, a leading global investment bank and asset management firm, has applied for Bitcoin exposure to several institutional-focused funds in a bid to bring the best digital asset to the public.
In an SEC filing, Morgan Stanley said some of its funds will have indirect exposure to Bitcoin through investments in ETFs.
Morgan Stanley Wants Bitcoin Exposure
Morgan Stanley is looking to integrate its recently launched spot Bitcoin ETF into 13 investment vehicles. These include the Advantage Portfolio, Asia Opportunity Portfolio, Counterpoint Global Portfolio, and International Opportunity Portfolio. However, these funds are restricted from allocating more than 25% of their assets to Bitcoin ETFs.
Nonetheless, Morgan Stanley acknowledged that these investments carry the same risks as investments in cryptocurrencies and Bitcoin.
“The Fund may gain investment exposure to Bitcoin indirectly by investing in a Bitcoin ETF. The Fund’s investment in a Bitcoin ETF is subject to certain limits at the time of investment. The risks of investing in a Bitcoin ETF are similar to the risks of investing in cryptocurrencies generally. Investing in a Bitcoin ETF exposes the fund to all risks associated with Bitcoin,” the filing reads.
This is not the first time that Morgan Stanley has responded positively to cryptocurrency-related investments. Several of the firm’s funds previously held shares of Grayscale’s Bitcoin Trust (GBTC) before converting to a spot-traded ETF.
The investment bank’s recent filing could significantly boost the adoption and expansion of the newly introduced spot Bitcoin ETF. Since its launch in January, the Bitcoin ETF has sparked a surge in the price of Bitcoin, pushing it past $60,000. This surge was fueled by significant ETF inflows exceeding $7 billion and significant accumulation by large investors.
Although many expect this upward trend to continue, experts warn of a potential Bitcoin price correction. Technical analysts have pointed out that Bitcoin may be approaching an indicator that signals a cycle peak.
“Since September 11th Bitcoin is up 233%. The worst closing price decline was -15.7% from January 8 to January 22. Although such a decline is not my prediction, I believe a decline below 55,000 would be a buying opportunity.” Trading veteran Peter Brandt said.
Read more: Bitcoin price prediction for 2024/2025/2030
Another indicator, the golden ratio multiplier, suggests that Bitcoin highs typically occur around “level 5.” This threshold is $67,500 in the current cycle. Interestingly, this indicator has proven accurate in all previous cycles, with Bitcoin repeatedly retracing after reaching this level.
“Level 5 is where all cycles are made at the mid-price range, holding the most massive price targets for all mid-price ranges,” explained technical analyst CryptoCon.
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