Morgan Stanley's Bitcoin Trust Sees Huge Inflows Amid Decline in Net Assets

Morgan Stanley's Bitcoin Trust saw significant inflows during its first 85 days of operation. The trust received $371.1 million in gross share contributions and $5.26 million in redemption distributions, with creations dominating redemptions despite a decline in Bitcoin's value.

The net asset value per share fell by 14.01%, from $19.70 to $16.94, while the disclosed CoinDesk Bitcoin benchmark declined by 13.98% over the same period.

Unrealized Bitcoin depreciation accounted for nearly 99% of the operating-period decrease in net assets, totaling $66.17 million. The trust's holdings consisted of 5,059.3077 BTC with a cost basis of $365.18 million and a fair value of $299 million at quarter-end.