The uptake and institutional entry into the cryptocurrency arena continues.

US investment bank, Morgan Stanley, plans to allocate part of its funds to invest in bitcoin via futures contracts that are settled in cash or indirectly through a (GBTC) fund, according to to deposit Filed by Morgan Stanley with the Securities and Exchange Commission (SEC) on Thursday, April 1.

From the filing submitted to the SEC:

Some of our mutual funds may have exposure to bitcoin indirectly through cash-settled futures contracts or indirectly by investing in the Grayscale Bitcoin Trust (GBTC), a special investment vehicle that invests in bitcoin.

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Morgan Stanley also indicated that investing in bitcoin, whether via futures or GBTC, will be regulated through the bank’s subsidiary, which is an exempt company under the laws of the Cayman Islands.

In its filing with the SEC, Morgan Stanley listed 12 funds it plans to allocate to investing in bitcoin, including one:

• Advantage Portfolio
• Asia Opportunity Portfolio
• Counterpoint Global Portfolio
• Development Opportunity Portfolio
• Global Advantage Portfolio
• Global Opportunity Portfolio and more…

risk assessment:

At the same time, the bank highlighted the volatility of Bitcoin and indicated that exposure to cryptocurrencies may present some risks.

The document submitted by Morgan Stanley to the SEC focused on the following:

The value of the Fund’s investments in cryptocurrencies is subject to fluctuations in the value of the cryptocurrency, which have been and may be highly volatile in the future.

The price of Bitcoin can drop sharply (including to zero) for several reasons.

In addition, there is also the possibility that funds exposed to Bitcoin could incur significant losses, which the bank has clarified and stressed.

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Therefore, only customers and companies with significant net worth will be allowed to access the new offerings due to “extreme risks”, according to Morgan Stanley.

Thus, only clients with at least $2 million in investments deposited in Morgan Stanley will be able to be exposed to Bitcoin.

For investment firms, the minimum requirement is $5 million.

We mentioned in a previous article on Bitcoin Arab about Morgan Stanley in talks to acquire a stake in Bithumb, the largest cryptocurrency exchange in South Korea:

Morgan Stanley is looking to acquire a stake in Bithumb, a cryptocurrency exchange

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Fidelity Investment Company Submits Application for Bitcoin ETF Approval

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