Morgan Stanley Boosts BlackRock Bitcoin ETF Stake by 23% Amid Q2 Crypto Shifts

Woofun AI reports that Morgan Stanley expanded its crypto fund positions in the second quarter, led by a surge in BlackRock's Bitcoin exchange-traded fund (ETF) holdings.

The bank's Q2 13F filing with the US Securities and Exchange Commission on Thursday revealed that Morgan Stanley's reported holdings in BlackRock's iShares Bitcoin Trust ETF (IBIT) increased by 23% to around 16.5 million shares from 13.4 million. This represents an addition of more than 3 million shares.

Additionally, Morgan Stanley reported 2.57 million shares of its own Morgan Stanley Bitcoin Trust (MSBT), worth about $43.3 million. The product began trading in April.

Woofun AI data shows that despite adding about 3.04 million IBIT shares, the position's value fell about 18% to $549 million from $667 million as Bitcoin fell during the quarter. The bank also sharply increased several smaller Bitcoin ETF positions, including the Grayscale Bitcoin Mini Trust ETF (BTC) and Bitwise Bitcoin ETF (BITB), while its Fidelity Wise Origin Bitcoin Fund (FBTC) holding rose nearly 38%. Ether holdings grew as well, with Morgan Stanley increasing its iShares Ethereum Trust ETF (ETHA) position by about 202% to 4.6 million shares and its Grayscale Ethereum Staking Mini ETF (ETH) position by about 26% to 5.1 million shares.

In addition to initiating its MSBT position, Morgan Stanley added new exposure to the Grayscale Solana Staking ETF (GSOL) and Fidelity Solana Fund (FSOL), worth about $4.25 million and $2.26 million, respectively.

A more critical variable is the move in Circle Internet Group (CRCL), the company behind the USDC stablecoin, with reported holdings increasing from about 1.46 million shares to 8.32 million shares. The filing also showed substantial additions to several Bitcoin mining and infrastructure companies, including Cipher Digital (CIFR), Core Scientific (CORZ), Hut 8 (HUT) and Bitdeer Technologies (BTDR).

Not every crypto-linked position grew. Morgan Stanley reported about 550,000 fewer Coinbase (COIN) shares, cut its CleanSpark (CLSK) position by more than 3.1 million shares and fully exited a roughly 8 million-share Bitfarms (BITF) position. This selective trimming highlights a strategic pivot toward direct asset exposure over platform equity.