Morgan Stanley Makes Its Move into Cryptocurrencies: Increases Bitcoin and Ethereum Holdings, Turns to an Altcoin for the First Time

Morgan Stanley significantly increased its position in Circle while expanding its investments in the cryptocurrency sector in the second quarter. According to the 13F filing submitted to the U.S. Securities and Exchange Commission (SEC) on August 14, Morgan Stanley increased its holdings of Circle (CRCL) shares from approximately 1.46 million to 8.32 million as of June 30.

The bank also expanded its positions in Bitcoin and Ethereum spot ETFs during the same period. Morgan Stanley’s BlackRock iShares Bitcoin Trust (IBIT) position increased from 13.4 million shares in the first quarter to approximately 16.5 million shares. This represents an increase of about 23 percent in terms of the number of shares held. Conversely, due to the decline in Bitcoin price, the market value of the IBIT position decreased by approximately 18 percent, from $667 million to $549 million.

Morgan Stanley also increased its holdings in Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, and Fidelity Wise Origin Bitcoin Fund (FBTC), while holding approximately 2.57 million MSBT shares worth about $43.3 million. The increase in the bank’s FBTC holdings was approximately 38 percent.

Ethereum also saw more aggressive growth. Morgan Stanley’s BlackRock iShares Ethereum Trust (ETHA) position increased by approximately 202% to 4.6 million shares, while its Grayscale Ethereum Staking Mini ETF position rose by about 26% to 5.1 million shares.

The bank also turned to Solana investment products. In the second quarter, Morgan Stanley opened new positions in the Grayscale Solana Staking ETF and the Fidelity Solana Fund, with these investments valued at approximately $4.25 million and $2.26 million, respectively.

A more varied picture emerged in crypto-related company stocks. Morgan Stanley increased its positions in mining and infrastructure companies such as Circle, Cipher Digital, Core Scientific, Hut 8, and Bitdeer.

On the other hand, the bank reduced its Coinbase position by approximately 550,000 shares, while decreasing its holdings in CleanSpark by over 3.1 million shares. Morgan Stanley also completely closed its Bitfarms position, which amounted to approximately 8 million shares.

*This is not investment advice.