Morgan Stanley has made a daring move into the cryptocurrency market by way of making an investment of $270 million in Grayscale’s Bitcoin ETF, GBTC. This highlight’s Morgan Stanley as one of the highest institutional holders of GBTC, reflecting a growing wave of institutional interest in Bitcoin ETFs.
Growing Institutional Interest
The mass adoption of cryptocurrency that is being witnessed at this time is only the tip of the iceberg when you view it from the lens of how many institutions have come on board. There are over 900 (currently sitting at 937 at the time of writing) companies that have invested a combined whopping sum of $3.5 billion into Bitcoin ETFs. This figure covers only the first quarter alone and is indicative of a significant shift in how conventional financial establishments are heavily investing in cryptocurrency.
Significant Inflows for Bitcoin ETFs
Bitcoin Exchange Traded Funds have recorded astronomical inflows in recent times, and with $1.3 billion invested only in the last two weeks one would agree that the mass adoption by institutions are here to stay. These inflows have successfully written off the negative trends observed in the month of April, bringing the total inflows minus tax for Bitcoin ETFs to about $12.3 billion from inception till date.
Market Impact and The Expanding US Market
The recent surge in interest in Bitcoin ETFs is especially more pronounced in the US, where almost 1,000 companies have invested already. Daily spot Bitcoin volumes have also been massive, exceeding $5 billion. This further outlines the developing widespread acceptane of bitcoin as well as the liquidity of Bitcoin.
