Morgan Stanley has filed with the US Securities and Exchange Commission to charge Bitcoin to 12 of its mutual funds' investment strategies. These mutual funds can invest in Bitcoin futures and gain indirect exposure to the cryptocurrency by investing in Grayscale Bitcoin Trust, the login details.
Bitcoin exposure for 12 Morgan Stanley mutual funds
Morgan Stanley Institutional Fund Inc., Morgan Stanley's asset management division, filed a statement with the SEC on Wednesday for additional information. The purpose of the filing is to enable 12 of the investment bank's mutual funds to gain exposure to Bitcoin.
The company stated that "Bitcoin Exposure" has been added to the "Investment Policies and Strategies" of 12 mutual fund portfolios under the "Other Securities and Investment Strategies" section.
The mutual funds that may start adding a bitcoin exposure are the Advantage Portfolio, the Asia Opportunity Portfolio, the Counterpoint Global Portfolio, the Developing Opportunity Portfolio, the Global Advantage Portfolio, the Global Permanence Portfolio, the Global Opportunity Portfolio, the Growth Portfolio , the Inception Portfolio, the International Advantage Portfolio, and the International Opportunity Portfolio and Persistence Portfolio.
The submission describes:
Certain Funds may have exposure to Bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in Bitcoin.
Additionally, the filing states that each portfolio "may gain exposure to Bitcoin and other assets by investing up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under Cayman Islands laws." Additionally, "any subsidiary can invest in GBTC, cash-settled bitcoin futures, and other investments."
Regarding the BTC-based futures contracts some funds may invest in, the filing clarifies: "The only bitcoin futures a fund can invest in are cash-settled bitcoin futures that are filed with the CFTC (the US Commodity Futures Trading Commission) registered futures exchanges. . ”
Morgan Stanley recently announced that it would offer high net worth clients access to three bitcoin mutual funds. In February, the company's head of emerging markets and chief global strategist said, "Cryptocurrencies are here to stay as a serious asset class."
What do you think of Morgan Stanley adding a bitcoin exposure to its mutual funds? Let us know in the comments below.
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