Morgan Stanley Raises BlackRock Bitcoin ETF Shares 23% in Q2 Despite Value Drop

Morgan Stanley significantly increased its holdings in BlackRock’s iShares Bitcoin Trust during the second quarter, even as the value of that position declined due to weaker Bitcoin prices, according to a regulatory filing with the U.S. Securities and Exchange Commission. The bank also expanded its exposure to Ethereum and Solana-focused funds while making selective adjustments to its investments in cryptocurrency-related public companies.

The firm’s reported position in the iShares Bitcoin Trust (IBIT) rose to approximately 16.5 million shares at the end of June, up from about 13.4 million shares at the close of the previous quarter. This represented an increase of roughly 3.04 million shares, or about 23%. However, the market value of these shares fell nearly 18%, dropping to approximately $549 million from around $667 million, a decline attributable to Bitcoin’s price movement during the quarter ending June 30.

The filing, submitted on August 11, is a consolidated Form 13F that covers multiple affiliated investment managers. It provides a snapshot of eligible U.S. securities held at quarter’s end but does not disclose short positions, all transactions, or establish that every...