Morgan Stanley Adds Another Bitcoin-Focused Fund From NYDIG And FS Investments

What Happened: Earlier this year, Morgan Stanley MS offered its wealthiest clients exposure to Bitcoin BTC/USD through three funds, becoming the first major U.S. bank to do so.

Two of the funds on offer were from Mike Novogratz’s crypto investment firm Galaxy Digital Holdings Ltd (OTCMKTS: BRPHF), and the third was a joint effort by FS Investments and NYDIG.

Morgan Stanley has now added the fourth Bitcoin fund from FS Investments and NYDIG, according to a new filing with the SEC.

The FS NYDIG Institutional Bitcoin Fund LP listed its recipient as Morgan Stanley in the filing, which stated that it "will receive certain placement and servicing fees with respects to clients it refers to the issuer, as disclosed to the applicable clients."

Why It Matters: Morgan Stanley attracted nearly $30 million from investors just two weeks after listing its Bitcoin-focused private funds in April, according to a report from CoinDesk.

Regulatory documents revealed that 322 investors had pooled together $29.4 million worth of funds, making it one of the largest funds by investor count.

The addition of another institutional Bitcoin fund during a time when market sentiment around crypto remains cautious might also be a positive sign for investors, as it signifies existing demand.

Price Action: At press time, Bitcoin was trading at $38,929, with a daily trading volume of $38 billion. The leading cryptocurrency rallied as much as 20% over the weekend but has traded sideways for the past three days.

Image: Icc1977 on Wikimedia Commons