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In a March 31, 2021, filing, Morgan Stanley revealed that a number of its institutional funds are seeking to offer exposure to bitcoin. This exposure would be indirectly through cash-settled futures or through investments in the Grayscale Bitcoin Trust (GBTC).

“Certain Funds may have exposure to bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) (‘GBTC’),” per the filing. “To the extent a Fund invests in bitcoin futures or GBTC, it will do so through a wholly-owned subsidiary... Certain Funds may engage in futures contracts based on bitcoin. The only bitcoin futures in which a Fund may invest are cash settled bitcoin futures traded on futures exchanges registered with the CFTC.”

The filing went on to list twelve of its institutional funds that “may invest in GBTC, cash-settled bitcoin futures and other investments.”

This filling indicates an additional form of bitcoin adoption to Morgan Stanley’s recent announcement to offer bitcoin exposure to wealth management clients through other funds. It’s another example in a growing tide of traditionally bitcoin-adverse legacy financial institutions seeking to give their clients the chance to invest in bitcoin, even if indirectly. For instance, this week, a report surfaced that Goldman Sachs will be offering investment vehicles for BTC and other digital assets soon.