It appears that American investment and finance giant Morgan Stanley is launching access to three crypto investment funds that allow investors to maintain ownership of bitcoin, CNBC reports.
What we inspect with the "El Bailador" road simulator: interview with CNBC, several people related to Morgan Stanley They assure that the financial multinational is preparing to launch access to 3 investment funds with cryptocurrencies, and digital assets, which will allow their investors to maintain ownership of bitcoins. The media cites that people with knowledge of the matter revealed that two of the funds to which Morgan Stanley will offer access, the Bitcoin Fund LP and Institutional Bitcoin Fund LP, belong to the company Galaxy Digital, founded by the well-known investor Mike Novogratz; while the third fund, the FS NYDIG Select Fund, is a joint effort made by the asset manager FS Investments and the Bitcoin company NYDIG.
Apparently, the financial institution is preparing its advisors to begin offering the new services very soon, although they will do so only to investors and accredited clients who manage large amounts of capital. The financial multinational says that cryptocurrencies are high-risk digital assets, so they will be permitted services only for its richest and wealthiest clients.
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Direct exposure to Bitcoin with limitations
Although Morgan Stanley's new services seem to allow investors to own their own cryptocurrencies, this entity's exposure to Bitcoin is being limited to only the luckiest clients.
Those familiar with the matter point out that Morgan Stanley will impose a minimum of $2 million in capital for accredited investors and a minimum of $5 million for institutional investors who want to participate in these funds. The financial institution considers that these limits are the most appropriate to protect investors and their capital; allowing exposure to Bitcoin only for people, companies and firms with “an aggressive risk tolerance”, who manage at least this amount of dollars in assets held by the company.
Likewise, the percentage of investment in Bitcoin through Morgan Stanley will be limited to 2,5% of investors' funds; and the accounts of those interested in participating in these bitcoin investment funds must be at least 6 months old with the financial institution.
On the other hand, the exposure that Morgan Stanley will be offering is good for investors, since it will give them the opportunity to manage their own cryptocurrencies. Unlike Goldman Sachs, JPMorgan Chase and Bank of America, it is taking a step toward true adoption. Currently, Goldman Sachs, JPMorgan Chase, and Bank of America do not allow their advisors to offer direct investments in bitcoin.
Clients ask for cryptocurrencies
Morgan Stanley, which manages funds worth about $4 trillion, is responding to the needs of its clients and investors, who ask the financial institution to offer exposure to cryptocurrencies. The company sent an internal memo to its advisors indicating the soon launch of access to the 3 cryptocurrency investment funds. In addition, as the media explains, these funds will allow investors to maintain ownership and control over their own bitcoins.
The market's leading cryptocurrency, Bitcoin, has had impressive growth so far this year, with an increase of more than 200% in its value, reaching more than $61.700 USD per unit. The volatility present in bitcoin makes this cryptocurrency an asset with great potential and attractiveness for investment. Executives related to the entity noted that Morgan Stanley clients are eager to access the long-term appreciation potential that bitcoin offers as a new asset class.
Important announcements in the industry
Although Morgan Stanley has not made an official statement, CNBC indicates that the new service offerings will possibly be available next month, when the training that the financial multinational's advisors are receiving to offer the new products ends.
On the other hand, Robby Gutmann, director of the Bitcoin investment company NYDIG, pointed out that next week large companies will make announcements that will favor the adoption of the crypto industry. NYDIG recently completed a $200 million capital round, involving companies such as Morgan Stanley, New York Life, MassMutual, FS Investments, among others.
Wall Street investors are showing greater interest in bitcoin and cryptocurrencies. Recently, well-known investor Kevin O'Leary pointed out that on Wall Street investors are showing interest in knowing how bitcoins are mined, referring to the energy used to keep the network operational.
At press time, Bitcoin is trading at a value of $59.040 USD, and has a market capitalization of $1,1 trillion.
Continue reading: Wall Street Investors Are Interested in How Bitcoins Are Mined
