Is Morgan Stanley launching its fourth Bitcoin (BTC) investment fund?

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Jun 16, 2021
  • FS Investments and NYDIG have filed paperwork with the SEC to launch a new Bitcoin fund.
  • Morgan Stanley will receive servicing fees and specific placement for clients it refers to the issuer.
  • The fund is now the fourth linked to the banking giant this year.

FS Investments and NYDIG announced that they have filed paperwork with the U.S. Securities and Exchange Commission (SEC) for the launch of a Morgan Stanley-focused Bitcoin investment fund.

Additionally, Morgan Stanley hopes to use the approval to give exposure to its clients on Bitcoin (BTC/USD).

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The report also indicated that Morgan Stanley will receive servicing fees and specific placement for clients it refers to the issuer.

FS Investment is a major alternative investment manager while NYDIG is a top tech and financial services company that has devoted to Bitcoin.

Earlier in March this year, Morgan Stanley led the way as the first major US bank to expose clients to Bitcoin. The bank allowed clients to invest in the Galaxy Bitcoin Fund LP and the FS NYDIG Select Fund.

Additionally, it also exposed clients via a trio of funds, including the investment funds jointly created by FS Investments and NYDIG.

However, based on the June 15 document, sales concerning the FS NYDIG Institutional Bitcoin Fund LP are still on hold.

According to a Coinbase report in April, the FS NYDIG Select Bitcoin Fund LP received an impressive input of close to $30 million from investors.

The fourth fund connected to Morgan Stanley

The filing with the SEC indicates that it will be the fourth fund Morgan Stanley has been involved in. New, more clients will be able to get themselves exposed to Bitcoin without having the volatility risk of taking custody of the asset.

Per the details in March, FS Investments and NYDIG announced their formal partnership in the same month the Morgan Stanley initiative launched its offering.

Bitcoin keeps drawing interest from the mainstream

Wall Street firms have been reluctant to consider Bitcoin as an asset class. But the crypto asset’s rally since the past year has put many of them under pressure to consider the asset.

Morgan Stanley’s move on the Bitcoin fund was viewed by the crypto community as a major step for the acceptance of Bitcoin as an asset class by the mainstream. Then, Morgan Stanley noted that it decided to make the move following the high demands it has received from clients on exposure to the cryptocurrency.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
67% of retail CFD accounts lose money