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Morgan Stanley increases its BTC

Bitcoin, despite the fact that it is in the consolidation stage, is perceived by institutional institutions as a serious source for investment. This can be seen from the latest documents of a large American investment bank, which acquired shares of Grayscale Trust BTC – a means that a few weeks ago was preferred by institutional investors, and which had no excellent alternatives in the United States.

Large purchases of Grayscale’s BTC Trust shares are great news for Bitcoin, and this was the reason for loud statements in the media that Morgan Stanley customers are buying BTC.

Even if the news circulating online points to the Morgan Stanley group as a buyer, the issue is actually more complicated. Because in fact, a large banking group offering investment services to clients of a certain level buys for its own funds through shares, which, in turn, are in the hands of customers.

Bitcoin, indirectly through Grayscale Trust, was actually bought, albeit for inclusion in different wallets. Portfolios available to the group’s clients. However, there were also important purchases that were reported consistently:

  • about 700,000 shares have been purchased for the growth portfolio, which currently corresponds to about $30 million;
  • Another 600,000 shares were bought by Insight Fund, which is also part of the bank’s managed products;
  • Approximately 500,000 shares have also been added to the global opportunities portfolio.

All in all, it’s worth about $85 million at current prices for Grayscale trust fund shares. The liabilities may not be as large compared to the liabilities of many private companies, but they are still a sign of a large appetite of institutional investors for BTC.

This commitment, among other things, has reached a not encouraging phase for BTC, given that all purchases were made before September 30, before the shock that raised the price of the first cryptocurrency on the market to an all-time high.

Will this change the behavior of the ETF?

Probably yes, given that they are much easier to deal with even for Morgan Stanley, and given that the premium compared to actual market prices is much lower. Thus, we are facing an epochal turning point in relation to ProShare products, as well as other funds, and other funds may be accepted even before the end of the year.

The Bitcoin institutional fever is still far from abating – and this is one of the news, minus the short-term noise, that should be used to raise the position of the BTC in the market even higher. Why alone? But because Morgan Stanley is not alone in its desire to join the crypto space.

Bitcoin in the first bank of Estonia

Not only American banks are addicted to cryptocurrencies. Also in Estonia, the country’s largest bank, LHV, has decided to allow its customers access to Bitcoin, Ethereum, Chainlink and other cryptocurrencies that can be exchanged through its services.

And all this is inside a proprietary application that, at least according to the statement, will use the services offered by Bitstamp as an entry into the market. Everything is integrated into the investment platform of the institution.

Estonia LHV offering cryptocurrency to everyone marks the path that other European institutions can follow.

LHV is a little-known group in the EU area, but which is actually the largest operator of retail banking services in Estonia. The news received a few hours ago is incredible because the group will be ready to integrate Bitcoin and other cryptocurrencies with high market capitalization.

The system will integrate its own application, which, in turn, will be included in the investment structure offered by the bank to its retail customers. Bitstamp will act as an intermediary in the world of cryptocurrencies through coordinated and direct access, and, more importantly, through the physical purchase of cryptocurrencies, and not through futures or other types of mediation.

Although Estonia may not be the first economy that comes to mind when we think about the possible expansion of the cryptocurrency world, it still remains an important tool for accepting cryptocurrencies, given the fact that it seems to be taking sides.

Implications for the World of Cryptocurrencies

This news is actually being considered as part of the adoption of cryptocurrencies that is happening all over the world. It turns Bitcoin into a full-fledged investment asset that will also be available to the public away from technological innovation.

Of course, we can’t expect quick steps like in El Salvador, but the availability of major cryptocurrencies on the market, available in a large institutional bank, as well as for a small public is something we could never have imagined.

But that’s not all. The cue ball presented another surprise.

A New record for the number of active Bitcoin wallets

A new record high for Bitcoin, even if according to Coinmarketrate.com , its value is at $57,000. The number of active wallets, that is, wallets that have more than a few Satoshi, has reached a new record. At the time of writing, according to the data that was disclosed by Glassnode, there are more than 39 million addresses that account for perhaps even a minimal share of cryptocurrency.

News that reduces the atmosphere of anxiety in the market phase, in which, unfortunately, Bitcoin is still subject to sideways movements. The news is bullish, because it means that in any case, despite the static price, new investors continue to come to the market.

Almost 39 million active wallets, despite the correction, is a success! This data is very important for the mood around Bitcoin. In fact, we are facing a very interesting organic growth in the number of wallets with a positive rather than zero balance.

The infographic we report shows that in fact, there is not always a complete correspondence between an increase in the number of wallets and an increase in the price of Bitcoins. But the data should also be interpreted in light of November, which has losses less than expected.

BTC exchange rate. Source: Coinmarketrate.com
BTC exchange rate. Source: Coinmarketrate.com

Although the price has moved away from the all-time high reached just a few weeks ago, more and more people are deciding to buy Bitcoins and keep them in their wallet.

Fear is still not at its best, but…

The fear and greed index is in a situation that signals the greatest fear of the markets today in the cryptocurrency sector, although it is recovering compared to last week.

The situation is far from the highs of negative sentiment that were affected during the maxi-correction in May and June. An analysis that we can consider relatively static, including due to the surge, at least for the moment, in classical financial markets.

How to move in this context

Our key to understanding is that we are facing another phase of accumulation, always or almost always, preparatory to the Bitcoin momentum. There seem to be no objective reasons for concern. A sign of this is also a very moderate reaction of the markets to the news about a possible ban on cryptocurrencies in India.

News that in practice is very different from what is actually happening in India, but which in other contexts would still cause serious concerns, and no less important corrections.

Instead, the market absorbs the signal, which is still dominated by speculators – lovers of sideways movements, because they usually end up shaking hands with small investors. The best strategy at the moment in the market is HODL, continue to hold, as there are no signs of an impending collapse of the cryptocurrency.