QUICK SPARK: Morgan Stanley, JPMorgan Load Up on Bitcoin, Ethereum ETFs

Morgan Stanley and JPMorgan increased their exposure to cryptocurrency ETFs in the second quarter, with both banks adding to their Bitcoin and Ethereum positions despite a volatile period for digital assets, according to SEC filings.

JPMorgan increased its IBIT stake to about 10.4 million shares from 8.3 million and more than quadrupled its position in BlackRock’s Ethereum ETF to roughly 1.17 million shares. It also added positions in Solana and XRP investment products.

The filings highlight growing institutional adoption of crypto ETFs, with the biggest banks expanding exposure across Bitcoin, Ethereum and newer crypto assets.

QUICK CONTEXT: Big Banks Expand Crypto ETF Exposure

The second-quarter filings show that major Wall Street banks are continuing to build cryptocurrency exposure through exchange-traded products. The moves are notable because they came despite volatility in crypto markets during the quarter.

Morgan Stanley’s IBIT position increased in share count, but its reported value declined to about $549 million from $667 million as Bitcoin prices fell during the period. The bank also reported 2.57 million shares of its own Morgan Stanley Bitcoin Trust, which began trading in April.

Ethereum saw particularly sharp percentage increases. Morgan Stanley more than tripled its BlackRock Ethereum ETF position, while JPMorgan increased its stake in the same product more than fourfold. Both banks also broadened beyond Bitcoin and Ethereum, adding exposure to Solana products, while JPMorgan reported new positions in XRP investment products.

The filings suggest crypto ETF exposure is becoming increasingly diversified among large financial institutions.

Photo: Shutterstock