One of the largest US investment banks, Morgan Stanley, has more than doubled its exposure to BTC since April through the popular institutional investment instrument Grayscale Bitcoin Trust (GBTC).
According to a report submitted by Morgan Stanley to the US Securities and Exchange Commission (SEC), September 27, its Morgan Stanley Europe Opportunity Fund owned a total of 58,116 GBTC shares as of June 30, 2021. With 1 GBTC worth $ 34.28 at the time, it was worth about $ 2 million, although Morgan Stanley reported $ 2.4 million.
When comparing these figures with the April report, they show that the US bank has increased its holdings in the GBTC by 105% in recent months.
Morgan Stanley plans to invest in the cryptocurrency market through other forms of investment. For example, they recently participated in the initial round of Securitize financing, in which she poured $ 48 million. It is a platform focused on asset tokenization, which has the support of the American exchange Coinbase.
Recommends investing in Silvergate
Morgan Stanley yesterday announced the results of its analysis, on the basis of which it recommends investing in the banking company Silvergate, which provides commercial banking and credit services to cryptocurrency companies. Its services include, among other things, the possibility of providing loans, which are secured by BTC.
Morgan Stanley analyst Ken Zerbe thinks Silvergate shares are seriously undervalued at $ 109 and have the potential to go up to around $ 300, although he warned that adverse market conditions could eventually lead to the opposite scenario and fall to $ 40. “Silvergate provides bank investors with an almost pure way to contribute to the rapid growth of the nascent cryptocurrency industry.” said.
Silvergate should be added to that it has close relationships with the products and design of its upcoming stablecoin Diem.