Morgan Stanley Bitcoin Fund Draws $29.4M in 2 Weeks, Filings Show

Morgan Stanley’s new bitcoin product is already one of the largest funds of its kind by investor count.

AccessTimeIconApr 22, 2021 at 3:23 p.m. UTC
Updated May 9, 2023 at 3:18 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

One of Morgan Stanley’s new bitcoin-only private funds raised $29.4 million from 322 investors in its first 14 days, according to regulatory documents published Thursday.

Managed by FS Investments with NYDIG custodying the bitcoin, the fund is one of two new bitcoin investment vehicles offered by newly bullish Morgan Stanley. When news of the institutional stalwart’s bitcoin offering broke last month, it kicked Wall Street’s crypto musings into high gear.

  • Key Events You Shouldn't Miss at Consensus 2024
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    What's Next for FIT21?
  • The early returns for FS NYDIG Select Bitcoin Fund LP indicate investors are indeed hungry for accessing bitcoin products through their institutional managers. Passive funds such as Morgan Stanley’s fare give clients unwilling to custody their own keys an easy way into the asset class.

    In just 14 days, Morgan Stanley’s FS/NYDIG fund has become one of the most popular private bitcoin vehicles, beating out far older industry offerings from Pantera and Galaxy by investor count, according to fund data compiled by CoinDesk.

    Galaxy is also accepting bitcoin investments from Morgan Stanley in a pre-existing fund. Galaxy’s three bitcoin funds (one generaltwo institutional) have been around since late 2019 but began accepting investments through Morgan Stanley in early April 2021. They reported around $250 million in lifetime sales earlier this month.

    A source familiar with the trio told CoinDesk they receive investments from a mix of Morgan Stanley clients and outside investors.

    Seeking exposure to bitcoin via a fund is not without its drawbacks. Morgan Stanley limits clients’ bitcoin bets to 2.5% of their total net worth. They must have at least $2 million in net worth and they must pay an upfront placement fee of 3% for bitcoin investments under $250,000, according to offering documents obtained by CoinDesk.

    The average investment in Morgan Stanley’s new bitcoin fund was around $91,000. Morgan Stanley will receive placement fees, according to the regulatory documents. 

    Morgan Stanley declined to comment. NYDIG and FS Investments did not immediately respond to CoinDesk.

    UPDATE (April 22, 22:06 UTC): Adds information about Galaxy's fund composition.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.