Morgan Stanley Sells GBTC, Buys $187M in BlackRock’s IBIT: Bitcoin Price Analysis
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Bitcoin (BTC), the leading cryptocurrency, continued its downward trend and remained under pressure around $58,700 on Thursday, hitting an intra-day low of $57,806.
This downward rally follows Morgan Stanley’s decision to sell its entire GBTC position and shift $187 million into BlackRock’s IBIT. This suggests a lack of confidence in Bitcoin’s short-term prospects and could potentially lead to bearish sentiment in the market.
Additionally, the US government’s recent transfer of 10,000 BTC to Coinbase contributed to a 3.3% price drop, signalling potential future sell-offs and adding to market concerns.
Morgan Stanley significantly adjusted its Bitcoin investment strategy in Q2 2024, as revealed by a 13F filing. The banking giant nearly sold off its Grayscale Bitcoin Trust (GBTC) holdings, liquidating $269.9 million worth of shares, leaving a minimal exposure of $148,000.
Simultaneously, Morgan Stanley increased its investment in BlackRock’s Bitcoin ETF (IBIT), acquiring over 5.5 million shares valued at $190 million, making it one of the top five holders. The shift comes as GBTC saw massive outflows due to its high management fees, while IBIT’s popularity surged.
Despite cooling inflation signals, Bitcoin’s price dropped by more than 4%, trading around $58,334
Morgan Stanley Sells Entire GBTC Position, Buys $187 Million of BlackRock’s IBIT https://t.co/XkxbWltpZR pic.twitter.com/NEpaToNLwG
Morgan Stanley’s shift from GBTC to BlackRock’s IBIT could signal reduced confidence in GBTC, contributing to its outflows and Bitcoin’s price
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