Wall Street giant Morgan Stanley Bitcoin Exchange Traded Fund currently manages nearly $400 million in assets, even though it was only founded in April.
The bank’s first NYSE Arca exchange-traded fund got off to a strong start on its debut, bringing in more than $33 million in new cash in its first day.
The fund currently has over $391 million in assets, proving the product’s popularity. Many ETFs never reach $400 million in assets, let alone one quarter.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said Friday that the product is one of the most successful funds launched so far this year.
This week alone, investors put $15.7 million in new cash into the product, according to data from Farside Investors.
Morgan Stanley has made a big move into cryptocurrencies in recent years. Back in 2021, the company began offering wealthy clients exposure to Bitcoin through funds such as Galaxy Digital.
And last year, the bank’s CEO and chairman, Ted Pick, said the bank was working with regulators to consider how it could safely offer cryptocurrencies.
Back in April, the bank’s head of digital assets, Amy Oldenburg, said customer education, not product design, was the central challenge facing Bitcoin adoption.
ETF movements this week
After weeks of outflows and sloppy price action, US Bitcoin ETFs have seen new inflows over the past seven days.
So far this week, the product has received a total of $274 million in new investment, according to Farside Investors.
The fund is on a winning streak, receiving nearly $1 billion in the seven days ending Thursday, when all ETFs except Morgan Stanley products suffered outflows.
Bitcoin price was recently trading at $64,096, down more than 1% in the past 24 hours. The cryptocurrency remains virtually motionless for 7 days.
European asset management firm CoinShares said last week that while investors are once again putting new money into Bitcoin ETFs, other factors could hinder the digital asset market’s rise.
“I don’t see much upside potential from here,” said James Butterfill, head of research at CoinShares.
The article Morgan Stanley Bitcoin ETF approaches $400 million in assets was first published in Bitcoin Magazine and was written by Mathew Di Salvo.
