Crypto Weekly: Funds and fine Crypto Weekly: Funds and fine Crypto Weekly: Funds and fine

Crypto Weekly: Funds and fine

Cryptocurrencies 10 minutes to read
Mads Eberhardt

Cryptocurrency Analyst

Summary:  Morgan Stanley is planning to offer Bitcoin funds to its wealth management clients while having an acquisition of a cryptocurrency exchange in sight. Coinbase is delaying its public listing upon a USD 6.5mn fine.

Morgan Stanley to offer Bitcoin funds

Morgan Stanley is allegedly about to offer wealthy clients access to three Bitcoin funds. This offering marks the first time a large US bank offers Bitcoin funds to clients. Two of the three funds are from the crypto-financial service provider Galaxy Digital, publicly trading as GLXY:tsx, and the final fund is a collaboration between FS Investments and NYDIG. However, the offering from Morgan Stanley comes with rather strict restrictions. First, private clients need at least $2mn in assets held at Morgan Stanley to qualify. Investment firms need at least $5mn. Second, accounts must be minimum 6 months old. Third, the ones qualifying are only able to invest up to 2.5% of their total net worth in the funds. The restrictions are limiting the number of clients able to take part in the funds and restraining their potential exposure to the cryptocurrency. There is strong evidence that Morgan Stanley is doubling down on the crypto-market as they are reportedly also in talks to acquire a significant part of the leading Korean cryptocurrency exchange Bithumb. Bithumb is allegedly eyeing a $2bn valuation. Morgan Stanley is joining other US banks like JPMorgan, Goldman Sachs, and BNY Mellon, also having cryptocurrency products in their pipeline.

Coinbase to delay public listing upon a $6.5mn fine

Since the end of 2020, it has been public knowledge that the largest US-based cryptocurrency exchange Coinbase is eyeing a public listing. For roughly a month ago, Coinbase published its S-1 filing to the SEC showing its finances to the public for the first time. At that time, Coinbase could ideally go public already this month. However, the listing is now delayed until at least somewhere in April. The delay comes after a settlement published on Friday with the Commodity Futures Trading Commission – known as CFTC. The settlement comes with a $6.5mn fine. The CFTC proclaimed that Coinbase ran two automated trading programs between January 2015 and September 2018. In some cases, the programs engaged in trading with one another. Following that, CFTC argues that Coinbase provided misleading data through its API to entities like CME Bitcoin Real Time Index and NYSE Bitcoin Index as the trading activity could potentially result in a misleading perceived volume and level of liquidity. Coinbase did not disclose why it used the trading programs. However, it was perhaps with the purpose to better hedge orders from its retail clients through two distinct methods, meaning they could sometimes match trades.

Grayscale adds five new cryptocurrency trusts

The world’s largest cryptocurrency asset manager Grayscale started last week to offer five new cryptocurrency trusts. The new trusts are respectively investing in Chainlink, Filecoin, Basic Attention Token, Livepeer, and Decentraland. The newly offered trusts were filed in Delaware in December 2020 and October 2020. Since then, the cryptocurrency community has been speculating on when the trusts would go live if they were to be offered at all. Grayscale has as of yesterday $44.2bn in assets under management while the total cryptocurrency market capitalization measures $1.7trn. As Grayscale holds a significant part of the total market capitalization, it is rather consequential for the newly added cryptocurrencies to be included in a trust. It is often institutions buying the Grayscale trusts, potentially indicating that they want exposure to these cryptocurrencies.
BTC against USD. Source: CoinMarketCap.
ETH against USD. Source: CoinMarketCap.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.