Morgan Stanley, one of the world’s most influential financial institutions, has sought authorization from the SEC to make a modification to the “Morgan Stanley’s Europe Opportunity Fund” and add exposure to bitcoin ETFs. The bank is requesting permission from the US regulator to add a 25% exposure to cash-settled bitcoin ETFs in its fund.
This modification, as outlined in a filing with the US Securities and Exchange Commission (SEC), opens the door to exposure to bitcoin ETFs, with a limit of 25% of the fund’s assets.
Eric Balchunas, a reputable ETF analyst at Bloomberg, suggests that the fund may be adopting a disclosure approach as a risk mitigation measure against potential exposures to bitcoin ETFs. Balchunas points out that the fund is taking a proactive strategy to avoid mistakes. He considers disclosure as a way to mitigate risks in case the fund is exposed to bitcoin ETFs in the future.
Despite positive performance, “Morgan Stanley’s Europe Opportunity Fund” experienced a sharp decline over the past two years. It has virtually halted its growth. This could explain Morgan Stanley’s interest in enabling investment in bitcoin, suggesting the possibility that the fund is seeking strategies for growth. Especially considering the significant surge in the bitcoin market in recent days.
After several years of waiting, the SEC approved 11 cash-settled bitcoin ETFs last December. The approval of ETFs by the US regulator seems to have had a positive impact on the cryptocurrency market. At least, for now.
Jacobi Asset Management (Jacobi) launched Europe’s first cash-settled Bitcoin ETF on Euronext Amsterdam in 2023. The ETF is regulated by the Guernsey Financial Services Commission (GFSC). The ETF trades under the symbol BCOIN, and for its launch, Jacobi partnered with Wilshire Indexes. Jacobi obtained approval from GFSC in October 2021 and announced the ETF’s launch for July 2022. However, market circumstances necessitated postponing the operation