Morgan Stanley Expands BlackRock Bitcoin ETF Stake by 23% During Q2
The investment giant increased its IBIT position to 16.5 million shares during the second quarter, alongside expanded holdings in Ether ETF products and multiple cryptocurrency-related equities.
The American investment banking powerhouse Morgan Stanley disclosed expanded positions in cryptocurrency-focused funds during Q2, headlined by the acquisition of over 3 million additional shares in the Bitcoin exchange-traded fund (ETF) offered by BlackRock.
According to its second quarter 13F filing submitted to the US Securities and Exchange Commission on Thursday, Morgan Stanley's stake in the iShares Bitcoin Trust ETF (IBIT) from BlackRock grew by 23% to approximately 16.5 million shares, up from the previous 13.4 million.
The financial institution additionally disclosed ownership of 2.57 million shares in its proprietary Morgan Stanley Bitcoin Trust (MSBT), valued at approximately $43.3 million. This investment vehicle commenced operations in April.
The regulatory disclosure revealed expansion across multiple direct cryptocurrency fund investments during the second quarter, though the firm simultaneously reduced its reported stakes in Coinbase and certain other blockchain-related corporations.
Morgan Stanley grows Bitcoin and Ether ETF exposure
While the firm acquired roughly 3.04 million additional IBIT shares, the overall position value decreased approximately 18% to $549 million from $667 million due to Bitcoin's price decline throughout the quarter.
The banking giant also significantly expanded multiple smaller Bitcoin ETF holdings, including positions in the Grayscale Bitcoin Mini Trust ETF (BTC) and Bitwise Bitcoin ETF (BITB), while its stake in the Fidelity Wise Origin Bitcoin Fund (FBTC) climbed nearly 38%.
Ethereum-focused investments expanded as well, with the firm boosting its iShares Ethereum Trust ETF (ETHA) holdings by approximately 202% to 4.6 million shares and raising its Grayscale Ethereum Staking Mini ETF (ETH) stake by roughly 26% to 5.1 million shares.
Beyond establishing its MSBT holding, Morgan Stanley also opened new positions in the Grayscale Solana Staking ETF (GSOL) and Fidelity Solana Fund (FSOL), representing approximately $4.25 million and $2.26 million in value, respectively.
Circle and Bitcoin miners gain ground
An even more substantial position change occurred with Circle Internet Group (CRCL), the entity responsible for the USDC stablecoin, where disclosed ownership surged from approximately 1.46 million shares to 8.32 million shares.
The quarterly report further demonstrated significant increases across several Bitcoin mining and supporting infrastructure firms, including Cipher Digital (CIFR), Core Scientific (CORZ), Hut 8 (HUT) and Bitdeer Technologies (BTDR).
However, not all cryptocurrency-associated holdings experienced growth. Morgan Stanley disclosed approximately 550,000 fewer shares of Coinbase (COIN), reduced its CleanSpark (CLSK) stake by more than 3.1 million shares and completely liquidated a roughly 8 million-share position in Bitfarms (BITF).