Reputable financial giant Morgan Stanley has taken a big step in the direction of adopting Bitcoin by including language about Bitcoin ETFs in its SEC filings for the Morgan Stanley Europe Opportunity Fund.
The filing said, “The Fund may obtain investment exposure to Bitcoin indirectly through investing in Bitcoin ETFs. The amount of the Fund’s investment in Bitcoin ETFs will be subject to certain limits at the time of investment.”
Additionally, the filing said that investing in Bitcoin ETFs carries risks that are comparable to those associated with cryptocurrency investments more broadly. Investing in a Bitcoin ETF exposes the Fund to risks unique to that particular Bitcoin ETF in addition to all of the hazards associated with Bitcoin as covered above.
According to the documents, one of its funds may investigate indirect exposure to Bitcoin. Exchange-traded funds (ETFs) that contain Bitcoin and cash-settled Bitcoin futures contracts are mentioned in the documents, but it is emphasized that these investments would be conducted through a different business in the Cayman Islands.
The documents also emphasize the serious dangers that come with using Bitcoin, such as its erratic pricing, vulnerability to manipulation and fraud, unclear regulatory environment, and short asset class history. Concerns are also raised about how mining Bitcoin may affect the environment.
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