top of page
Search

1st March 2024 > > MS & MSTR.


tl;dr

MS is about to step up to demonstrate its love of liberty expressed through crypto-friendly policies. MSTR remains a top pick for all the right reasons.


Market Snap








Market Wrap

Following a rally from $51k in just the last week, BTC is taking a little breather. Outflows from GBTC came close to neutralising the inflows to the nine newborns yesterday, so that was an outlier of an ETF flow day.


Curious Cryptos’ Commentary – MS (Morgan Stanley)

MS has been a little more enthusiastic about cryptos than some of its peer group.


The firm bought a 10% stake in MSTR (MicroStrategy) the exact same day as the CC Treasury made its first investment in MSTR. MSTR stock has returned 146% since then compared to a measly 117% from BTC. For crypto enthusiasts, MSTR offers a leveraged play on the price of BTC with zero liquidation risk, but you know that already.


If you don’t believe it, consider these figures. Since 1st May 2023 (the CC Treasury always DCAs but I have picked this purchase at random) MSTR has returned 201% compared to BTC at 121%.


Unfortunately, the treasury buying program for MSTR did not include the nadir of the recent crypto winter of December 2022 but the equivalent numbers as of today are 560% and 290%.


These are undoubtedly leveraged returns. It is fair to say that MS is pretty happy with its foray into crypto related stocks.


Unattributed sources within MS have said that the firm is performing due diligence to add spot BTC ETFs to its brokerage platform for retail clients whose total AUM is a not so shabby $150bn.

Assuming this is a done deal, this extra demand will soon come online.


But the moral of this story has far greater significance. The vast majority of US retail investors are still unable to access spot BTC ETFs. That situation is improving on a daily basis, feeding the BTC ETFs with ever greater demand.


STOP PRESS

Wells Fargo and Bank of America have added spot BTC ETFs to their approved list for their client base. Every day, more and more financial institutions are getting involved. Perhaps even Vanguard, as CEO Tim Buckley resigns amidst rumours of a split with the board regarding cryptos.


Curious Cryptos’ Commentary – Talking of MSTR

There are a remarkably large number of news organisations who seem to take a perverse delight in taking potshots at cryptos, for reasons that escape me. All true libertarians are crypto supporters, so perhaps that might have something to do with it?


Anyway, now that MSTR is sitting on 193,000 BTC bought for $6bn but worth $12bn, I wonder what today’s headline might be:














I would also point out that Michael moved from CEO to Chairman, a step up not a step down, but why let the facts get in the way of your fear of the crypto revolution.

9 views0 comments

Recent Posts

See All

15th July 2024 > > UK.

tl;dr UK politics as they relate to cryptos. Market Snap Market Wrap In the last six trading days over $1bn has flowed into spot BTC ETFs. We are now one month away from the next quarterly deadline fo

14th July 2024 > > The CCC is back!

tl;dr A criticism, an apology, a dig at the bureaucrats (we haven’t had one for a while), an unlikely wish, and the tantalising prospect of fully opening the doors to TradFi. Market Snap Market Wrap L

7th July 2024 > > TON.

tl;dr TON potentially presents an opportunity like no other. Market Snap Market Wrap I am not the only one who remains relentlessly optimistic about the price of BTC: Curious Cryptos’ Commentary – TON

Comments


bottom of page