Morgan Stanley expanded its crypto-related exposure in the second quarter, increasing its holdings across Bitcoin and Ethereum exchange-traded funds, according to the bank’s quarterly 13F filing with the U.S. Securities and Exchange Commission.
The filing showed that Morgan Stanley’s position in BlackRock’s iShares Bitcoin Trust (IBIT) rose from 13.4 million shares to about 16.5 million shares. That was an increase of more than 3 million shares, or roughly 23% from the previous quarter.
Bitcoin’s price fell during the quarter, and the market value of the IBIT position dropped from about $667 million to $549 million. Even so, the bank continued to add to its ETF holdings rather than trim them.
Bitcoin ETF positions moved higher
Beyond IBIT, Morgan Stanley also increased exposure to several other Bitcoin ETFs. The filing listed additional buying in products tied to Grayscale Investments, Bitwise Asset Management, and Fidelity Investments. Its holding in Fidelity’s FBTC increased by about 38%.
Ethereum ETF allocation also expanded
The bank also lifted its Ethereum ETF holdings during the quarter. Its position in BlackRock’s ETHA climbed about 202% to 4.6 million shares, while its Grayscale Investments holding grew about 26% to 5.1 million shares.
First disclosure of MSBT and new Solana-related exposure
Morgan Stanley disclosed for the first time that it held about 2.57 million shares of its own Morgan Stanley Bitcoin Trust (MSBT), valued at about $43.3 million.
The filing also showed new investments in Solana-related products linked to Grayscale Investments and Fidelity Investments.
Crypto stock holdings were adjusted
On the equity side, Morgan Stanley sharply increased its investment in stablecoin issuer Circle Internet Group, raising its position from about 1.46 million shares to 8.32 million shares.
It also added to positions in several Bitcoin miners and infrastructure companies, including Cipher Mining, Core Scientific, Hut 8, and Bitdeer Technologies.
At the same time, Morgan Stanley reduced some crypto-linked stock exposure. The bank cut its Coinbase stake by about 550,000 shares, sharply reduced its CleanSpark position, and exited its investment in Bitfarms.
The report was cited by Cointelegraph and carried by Odaily.