Business News Report
February 29, 2024

Morgan Stanley’s Europe Opportunity Fund Files N-1A to Add Language on Investment in Spot Bitcoin ETFs

In Brief

Europe Opportunity Fund added language in an N-1A filing to allow investments in spot Bitcoin ETFs and may gain exposure under conditions.

Morgan Stanley's Europe Opportunity Fund Adapts N-1A filing to Add Language on Investment in Spot Bitcoin ETFs

Financial services company Morgan Stanley’s Europe Opportunity Fund has added language in an N-1A filing, to allow investments in spot Bitcoin ETFs submitted to the United States Securities and Exchange Commission (SEC). The fund may gain exposure to spot Bitcoin ETFs, stipulating that such exposure must not exceed 25% of the fund’s total assets.

The Europe Opportunity Fund has previously held the Grayscale Bitcoin Trust (GBTC) shares. Given the SEC’s approval for GBTC to transform into a spot Bitcoin ETF, adding such language ensures Europe Opportunity Fund’s alignment with the fund’s documentation regarding this investment.

Including this disclosure language by the fund could be interpreted as a risk mitigation measure if the fund acquires exposure to Bitcoin ETFs. Despite exhibiting positive performance, the fund has experienced modest inflows over recent years and has shown relative underperformance compared to the S&P 500 stock market index. Thus, Eric Balchunas, a senior ETF analyst at Bloomberg, suggests that this move might be part of a growth strategy for the fund.

“So it is interesting if you’re running this fund; it’s got to be tough because Europe doesn’t really have some of these names that you find in the U.S. that have just been the growth story. And so it might be this one just trying to look for a little kick, a little edge,” said Eric Balchunas. Regarding exposure, he expressed the belief that it would be surprising if it exceeded 2% of the fund’s total assets.

Mutual Funds Seek to Disclose Bitcoin Exposure

Mutual funds operate under stringent regulations, requiring comprehensive disclosures. This may explain why mutual funds are often the first to reveal their exposure to Bitcoin.

“So over the next couple of months, then we’ll see a bigger group of holders. Right now, the mutual funds make sense to see first, not because they added it first but because they have to report first,” said Eric Balchunas.

While exposure to Bitcoin may not align with the objectives of certain specialized funds, many fund managers would likely prefer to have the flexibility to explore the potential offered by the emerging range of ETFs. Consequently, this can be seen as a step in the ongoing integration of ETFs into the traditional financial infrastructure.

Adapting to market dynamics, Morgan Stanley’s Europe Opportunity Fund’s recent move reflects a calculated approach to explore opportunities and manage risks in the evolving financial landscape.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
Markets News Report Technology
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
April 16, 2024
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
Business News Report Technology
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
April 16, 2024
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
Business Markets News Report
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
April 16, 2024
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
Markets News Report Technology
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
April 16, 2024