According to U.Today, Morgan Stanley, the American multinational investment bank, has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to gain Bitcoin ETF exposure for 12 of its funds. The funds include Advantage, Asia Opportunity, Counterpoint Global, Developing Opportunity, Global Insight, Global Opportunity, Global Permanence, Growth, Inception, International Advantage, International Opportunity, and Permanence Portfolios. These funds may indirectly gain investment exposure to Bitcoin, the largest cryptocurrency, by investing in Bitcoin ETFs. However, the amount of investments into Bitcoin ETF will be subject to 'certain limits.'
The bank has stated that the risk associated with investing in spot Bitcoin ETFs is similar to the risk of investing directly in the underlying cryptocurrency. 'Investments in a Bitcoin ETF expose a Fund to all of the risks related to Bitcoin discussed above and also expose a Fund to risks specific to such Bitcoin ETF,' the filing states. Last week, AdvisorHub reported that Morgan Stanley might potentially allow thousands of its brokers to solicit purchases for Bitcoin ETFs, which are currently only allowed on an unsolicited basis. This could significantly boost the demand for Bitcoin ETFs.
Despite the significant drop in Bitcoin ETF flows, Bernstein, a prominent brokerage firm, remains optimistic about the largest cryptocurrency. The firm maintains its highly optimistic $150,000 Bitcoin price target, which it expects to be achieved next year. Bernstein believes that the recent wave of Bitcoin ETF outflows is only a temporary pause and should not be overanalyzed by analysts.