Morgan Stanley Builds Out Crypto While South Dakota Eyes a Bitcoin Reserve

TL;DR

• Morgan Stanley expands its crypto offering and hires a new head of digital assets.

• South Dakota becomes the latest U.S. state with a proposed new Bitcoin legislation.

Morgan Stanley Hires Head of Digital Assets and Expands Crypto Capabilities 💪 

Bitcoin’s institutional footprint is expanding quickly on Wall Street. This week, we see another financial institution growing its footprint in Bitcoin and digital assets. 

The U.S. banking giant Morgan Stanley has been expanding its exposure to digital assets and building a dedicated crypto team. 

A key step in this has been the appointment of Amy Oldenburg as the new Head of Digital Assets. She previously led emerging markets equity and contributed to digital asset strategy at Morgan Stanley Investment Management.

According to a Bloomberg report, co-presidents Andy Saperstein and Dan Simkowitz sent an internal memo on Monday stating that Oldenburg's position will be part of a firm-wide strategy and execution initiative.

Her appointment is part of the bank's long-term plan to offer access to crypto products and build a more comprehensive toolkit for investors. 

The bank has also filed for Bitcoin and Solana ETPs and is reportedly working on its own crypto wallet.

Looks like Morgan Stanley wants its piece of the digital asset pie to make sure they don’t miss out.

South Dakota Could Get Its Own Bitcoin Reserve 🇺🇸

It's been almost a year since the President announced that he wants to build a strategic Bitcoin reserve and digital asset stockpile. 

While we still need clarity on how the U.S. is accumulating Bitcoin, the direction is clear: the current administration wants to turn the United States into a crypto powerhouse. 

And that enthusiasm is catching on with several States as well.

The latest entrant to the Bitcoin race is the State of South Dakota. At least, it will be if South Dakota State Representative Logan Manhart gets his way.

A proposal, House Bill 1155, has been introduced by South Dakota Republican Rep. Logan Manhart. If passed, this bill would allow the state to allocate up to 10% of public funds to Bitcoin investments.

The bill includes multiple options for securely holding BTC, including having the Investment Council hold State funds directly or through a secure custody partner. 

The bill also placed a strong emphasis on security, requiring that any coins held by the State of South Dakota be secured with a private key exclusively controlled by the Investment Council. 

To date, Texas is the only state that has directly invested in Bitcoin, while Arizona and New Hampshire have passed legislation enabling potential future investments.

South Dakota could be the fourth State on that list, if the bill passes. 

Let's see what members of the State legislature will say, and, fingers crossed, they will recognize Bitcoin's potential and vote yes on the matter. 

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin: 

• BlackRock files for new Bitcoin premium income ETF

• Nearly half of all Bitcoin out there is held in self-custody

• Gold wipes out the entire crypto market cap in under an hour

• MARA shut down 770 MW mining operations due to winter storms

Your fellow stacker in sats, 

Patrick Lowry

PS: Connect with me up on X if you want to hear more of my thoughts on Bitcoin and digital assets.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.