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Morgan Stanley: Hedge Funds Poured $2 Billion into Cryptos in 2017
Banking giant Morgan Stanley has estimated that hedge funds invested $2 billion in cryptocurrencies this year.
By Wolfie Zhao
Updated Sep 13, 2021, 7:17 a.m. Published Dec 20, 2017, 11:01 a.m.
Banking giant Morgan Stanley has estimated that hedge funds invested a massive $2 billion in cryptocurrencies this year.
According to Business Insider, the figure was released in a note entitled "Bitcoin Decoded" sent by Morgan Stanley to its clients this week.
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The investment bank further detailed that more than 100 crypto-related hedge funds have sprung up over the past six years, however 84 of the funds launched in 2017.
The sharp growth trend coincides, unsurprisingly, with bitcoin's over 20-times price increase this year, from around $800 in early January to a high of almost $20,000 last weekend.
Compiled with data from Morgan Stanley's own research and Autonomous NEXT, the note helps bring into focus the surging interest from institutional investors at a time when bitcoin futures products have also been launched in CME Group and CBOE, two of the largest commodity exchange platforms in the U.S.
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As reported this week, legendary hedge fund manager Bill Miller, chairman and chief investment officer at Miller Valued Partners, said that his MVP1 fund now puts nearly 50 percent of the weight on bitcoin and bitcoin cash – a notable increase from just 5 percent in bitcoin when he first got involved with cryptocurrency.
Disclosure: CME Group is an investor in Digital Currency Group, CoinDesk's parent company.
Morgan Stanley image via Shutterstock
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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What to know:
- Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.
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