In another sign that Bitcoin’s time at the forefront of the financial world is nowhere near finished, Morgan Stanley divulged in an SEC finding that it more than doubled its investments in the Grayscale Bitcoin Trust over the last six months. With Morgan Stanley doubling down on Grayscale, a fund that issues shares directly tied to the market value of Bitcoin, the investment giant’s Bitcoin exposure has been pushed to more than $2 million.
Major investors have long been cagey about betting all on Bitcoin and other cryptocurrencies, citing the unpredictability of a new, as-yet-unproven currency. However, according to Dennis Lynch, head of Morgan Stanley subsidiary Counterpoint, this volatility may be one of the appeals of Bitcoin and other cryptocurrencies that have continued to drive the markets wild. “I like the idea here that you can bet small, win big,” Lynch explained at this year’s Morningstar investment conference.
This assessment is borne out by Bitcoin’s continued upward trajectory. Despite undergoing several dips in value over the last several years, downturns that have led to detractors hurriedly declaring an end to the currency, Bitcoin’s current value is trading at $41,000—more than three times its rate at this time last year. With major players like Morgan Stanley increasing their crypto exposure, it seems the era of winning big with the currency will continue.
