NYDIG, FS Investments Collaborate With Morgan Stanley To Create New Bitcoin Investment Fund
Financial services firm New York Digital Investment Group (NYDIG) and asset manager FS Investments would establish a Bitcoin investment fund aimed at US megabank Morgan Stanley clients.
NYDIG, FS Investments File Paperwork With SEC
NYDIG and FS Investments have already filed the necessary paperwork with the US Securities and Exchange Commission (SEC) for an investment fund for Morgan Stanley's wealth management clients.
According to the filing, Morgan Stanley would receive placement and servicing fees for referring clients to the issuers.
The fund, dubbed FS NYDIG Institutional Bitcoin Fund LP, would provide institutional clients' portfolio exposure to cryptocurrency.
This marks the fourth Morgan Stanley-linked fund to be established and the second from NYDIG and FS Investments.
Back in March, Morgan Stanley launched three funds geared towards offering its clients exposure to Bitcoin. One of these funds was jointly created by NYDIG and FS Investments, while Galaxy Digital backed the other two funds.
The Bitcoin funds were tagged the FS NYDIG Select Fund, the Galaxy Bitcoin Fund LP, and the Galaxy Institutional Bitcoin Fund LP.
The funds had high barriers to entry. While the minimum investment for the FS NYDIG Select and the Galaxy Bitcoin Fund LP was set at $25,000, the Galaxy Institutional Bitcoin Fund LP was set as high as $5 million minimum investment.
Paperwork filed with the SEC in April revealed that the FS NYDIG Select Bitcoin Fund had attracted nearly $30 million from investors.
NYDIG focuses on providing Bitcoin investment and technology solutions to insurers, banks, corporations, institutions, and high-net-worth (HNW) individuals. The company has been very active on the crypto front recently, especially since it signed a partnership with FS Investments in March.
In May, it also partnered with Fidelity National Information Services (FIS) to announce a way for ordinary bank customers to buy, sell and hold Bitcoin through their existing accounts.
Headquartered in Philadelphia, FS Investments is an asset management firm dedicated to enabling individuals, financial professionals, and institutions to design better portfolios.
The firm provides access to alternative sources of income and growth and focuses on setting industry standards for investor protection, education, and transparency.
Morgan Stanley Leading The Way For US Banks To Offer Cryptocurrency Services
Long shunned by Wall Street and financial regulators, Bitcoin, and other digital assets have gained acceptance at an accelerating pace this year.
Morgan Stanley was one of the first major US banks to offer its wealth management clients access to Bitcoin Funds. However, in recent times other banks have followed suit by rolling out cryptocurrency-related offerings.
These banks include Goldman Sachs with cryptocurrency trading desks and JPMorgan, which is expected to introduce a Bitcoin fund this year due to strong customer demand. Wells Fargo is also reportedly planning to roll out crypto investment offerings.