During the second quarter, Morgan Stanley made substantial additions to its holdings in Circle, reflecting a broader commitment to the cryptocurrency market. Per the 13F report submitted to the U.S. Securities and Exchange Commission (SEC) on August 14, the investment bank raised its stake in Circle (CRCL) from around 1.46 million to 8.32 million shares as of June 30.
In tandem, Morgan Stanley also enhanced its investments in Bitcoin and Ethereum spot exchange-traded funds (ETFs). Its stake in the BlackRock iShares Bitcoin Trust (IBIT) grew from 13.4 million shares in the prior quarter to approximately 16.5 million shares, marking a 23% increase in shares owned. However, the value of this IBIT position suffered an 18% drop due to falling Bitcoin prices, decreasing from $667 million to $549 million.
Additionally, Morgan Stanley boosted its investments in the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, and the Fidelity Wise Origin Bitcoin Fund (FBTC), holding about 2.57 million shares of MSBT valued at roughly $43.3 million. The bank’s stake in FBTC increased by around 38% during this period.
Ethereum saw even more significant growth, with Morgan Stanley’s investment in the BlackRock iShares Ethereum Trust (ETHA) surging by about 202% to 4.6 million shares. Its position in the Grayscale Ethereum Staking Mini ETF also grew, rising about 26% to 5.1 million shares.
In a new direction, Morgan Stanley invested in Solana products, establishing positions in both the Grayscale Solana Staking ETF and the Fidelity Solana Fund during the second quarter. These investments are valued at approximately $4.25 million and $2.26 million, respectively.
The bank’s activity in crypto-related equities painted a mixed picture. It increased its stakes in mining and infrastructure firms, including Circle, Cipher Digital, Core Scientific, Hut 8, and Bitdeer.
Conversely, Morgan Stanley trimmed its holdings in Coinbase by about 550,000 shares and decreased its CleanSpark position by over 3.1 million shares. Additionally, the bank entirely divested from Bitfarms, which previously held around 8 million shares.
*This information is not intended as investment advice.