Wall Street titan Morgan Stanley has significantly ramped up its exposure to Bitcoin, with its Bitcoin ETF holdings now exceeding $272.1 million. This marks just over two months since the investment powerhouse began providing its clients with indirect exposure to Bitcoin via ETFs.
Currently, these holdings represent 0.02% of the firm’s overall $1.2 trillion in assets under management.
Morgan Stanley urges CIOs to invest in Bitcoin mining stocks
Most recently, Morgan Stanley enabled thousands of its financial advisors to offer eligible clients the opportunity to invest in spot Bitcoin ETFs. This follows the SEC's approval of Bitcoin cash earlier this year, which prompted financial institutions to rush to capitalize on the growing demand for cryptocurrency investments. Therefore, the flows into Bitcoin ETFs have the expectations. The firm's global head of research highlighted Bitcoin mining stocks as promising investment news for CIOs. These investments could exploit the long-term growth opportunities associated with innovations in energy sources, ranging from natural gas to nuclear power. Mathew Sigel, director of asset research at VanEck, shared this in a social media post on October .
The suggestion, which was part of a recent briefing given to CIOs at major asset management firms, highlighted how regulations requiring data centers to add more energy production could increase demand for energy-intensive sectors like Bitcoin mining. According to the document, it is possible that regulations will extend to other regions, which would increase the possibilities for new investments in nuclear energy and natural gas plants.
JPMorgan predicts major crypto growth by 2025
At the same time, other financial institutions are also interested in cryptocurrencies. JPMorgan, for example, predicts robust growth in Bitcoin stablecoins through 2025, citing potential shifts and geopolitical factors as drivers. Analysts have even speculated that a Trump presidency could lead to increased demand from investors seeking protection against currency debasement. JPMorgan’s analysts pointed out that most of the liquidations tied to the Mt. Gox and Genesis bankruptcies and the German government’s Bitcoin sale are essentially over. These developments, combined with growing institutional interest, suggest a positive outlook for the cryptocurrency market.