Who will have access to tools from NYDIG and FS Investments
NYDIG and FS Investments announced the creation of a joint bitcoin fund, which will be available exclusively to clients of Morgan Stanley Investment Bank. Thus, the financial corporation has expanded the instruments, which allow making transactions with cryptocurrency. At the same time, Morgan Stanley will receive a part of the funds, which are charged from investors for the use of the fund.
In March last year, Morgan Stanley was the first among major U.S. financial corporations to launch an opportunity for its customers to invest in cryptocurrency instruments. Three bitcoin funds are already in operation for this purpose, but only large-cap clients with $2 million or more in assets have access to them. For corporate clients, this threshold should be at $5 million. In addition, they must have been clients of the bank for at least 6 months.
Morgan Stanley notes that the use of cryptocurrency-based instruments is an extremely promising area, which opens up huge opportunities for investors who are not afraid of risky assets. Clients can invest no more than 2.5% of their investment portfolio in such funds.
Morgan Stanley said that together with NYDIG and FS the company plans to further develop the bitcoin direction.
The partnership of the financial corporation with NYDIG began after Morgan Stanley became one of the investors of the company in the last round. In the course of the round, the company managed to raise $200 million for bitcoin-related projects.
NYDIG develops financial solutions that enable cryptocurrency transactions, but most of the tools are created for bitcoin. They are used in various spheres, including insurance, banking, investments, and clean energy projects.
It should be noted that bitcoin’s popularity among institutional investors is growing steadily every year. This indicates an important step in the integration of cryptocurrencies in investment segments, and for its part, NYDIG wants to provide market participants with all the necessary tools to conduct transactions with bitcoin. And the inflow of investment allows accelerating the development and release of new products which will interest not only representatives of the financial sector.
Various sectors are using its services, including insurance companies in the United States. The latter have invested in bitcoins through NYDIG tools about $1 billion, these funds are in custody. And experts note that such options for investing in cryptocurrency will only increase, which means that even today it is necessary to prepare convenient solutions for working with digital money.
