Morgan Stanley recently increased its investment in the Grayscale Bitcoin Trust (GBTC).
Grayscale Bitcoin Trust is a fund that allows investors to take a position on the price of bitcoin without having to buy and hold it directly.
Morgan Stanley shares on the investment line
As of April, Morgan Stanley was reported to own over 28,000 shares of GBTC, worth a total of $1.3 million.
Yesterday, a new summary document was published on the SEC’s official website, reporting that as of July 31, Morgan Stanley’s ownership of GBTC shares had risen to over 58,000, with a total value of just over $2 million.
The company states that the total acquisition cost of these shares was about $2.4 million, so for now the investment is at a 16% loss.
It is not known whether after 31 July the company continued to buy, had sold, or held its position.
It should be noted that as of July 31, the price of BTC was slightly lower than it is today, so the current value of those shares should be about the same.
The average purchase price of the 58,116 GBTC shares now owned by Morgan Stanley would correspond to an average bitcoin price of about $49,000, in line with that of early September, when presumably this investment was at breakeven.
Morgan Stanley’s European fund in GBTC
The European fund owned by Morgan Stanley that made this investment, the Europe Opportunity Fund, has total investments of around $371 million, of which only 0.5% is invested in GBTC.
This is a minimal exposure for a fund that aims to achieve long-term growth by investing in high-quality established and emerging companies that the management team considers undervalued at the time of purchase.
To achieve its objectives, the investment team of this fund focuses on investments that have sustainable competitive advantages and can be monetized through growth.
Some of the fund’s largest positions include Puma, Spotify and Campari.
With this increase, Morgan Stanley has become the second-largest single investor in Grayscale Bitcoin Trust, behind Cathie Wood’s ARK Invest, while overall, institutional funds hold around 6.5 million GBTC shares.