The memo states that Morgan Stanley will separate a team from the rest of the region that is concentrated on onshore and offshore China investments.

According to the memo, the company has designated Jun Xu, who oversees its investment funds denominated in yuan, as the head of all private equity investments in China.

Since joining Private Equity Asia in 2008, Xu, who joined Morgan Stanley in 2005, has spearheaded the growth of the company’s yuan-denominated private equity business in China.

According to the memo from Morgan Stanley, Nirav Mehta and Arjun Saigal, who are currently co-heads of India PE, will assume the role of co-heads of PEA ex-China.

PEA ex-China will continue to invest throughout the region with India as its primary focus. A firm representative attested to the memo’s contents.

Chou will be retiring after working for the Wall Street Bank’s private equity division for 35 years, including time spent in the New York office in the late 1980s.

In the 1990s, he moved to Asia to start the company. In addition to leading the establishment of the China Yuan and Thai Funds, he was a member of the firm’s Asia-Pacific Executive Committee and is a pivotal figure in its five regional private equity funds.

According to the memo, Andrew Hawkyard, who spent 24 years working for the PE Asia unit, and most recently held the position of chief investment officer, will also be retiring.

According to public disclosures, Morgan Stanley PEA has raised five private equity funds totalling over USD 4 billion for the region since 1999. PEA raised the largest fund to date, USD 1.7 billion, when the fourth Asia fund closed in 2014, according to the bank’s disclosures.

In other news, Morgan Stanley is looking to allow its 15,000 brokers to recommend bitcoin (BTC) exchange-traded funds (ETF) to their customers, according to a report from AdvisorHub.

The Wall Street giant has already opened up Bitcoin ETF purchases after they got the regulatory approval in early 2024. However, the bank is now looking to let its brokers pitch bitcoin ETFs directly to its customers. The move will see customers reaping the benefits of investing in the oldest cryptocurrency without direct exposure.

“We’re going to make sure that we’re very careful about it…we are going to make sure everybody has access to it. We just want to do it in a controlled way,” AdvisorHub reported, citing a Morgan Stanley executive.

The Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs in January 2024. The firms that got the approval include investment behemoths BlackRock (BK), Fidelity, Invesco (IVZ) and others.

“The approval brought massive inflows into the funds and, subsequently, bitcoin. However, the inflows have been dwindling for some time, with BlackRock registering zero daily inflow for its ETF for the first time,” Farside Investors stated.

The post Asia Private Equity & Bitcoin ETFs: Morgan Stanley’s focus amid leadership shift appeared first on International Finance.

Hudson River Trading, Virtu Financial, Jane Street and Jump Trading have entered into discussions with the American multinational investment company BlackRock on providing liquidity for the latter’s anticipated Bitcoin exchange-traded fund (ETF), which is awaiting regulatory approval.

Another asset management giant VanEck has joined the ETF craze by reportedly updating its Bitcoin spot Exchange Traded Fund (ETF) filing with the Securities and Exchange Commission (SEC).

VanEck, which offers tailored investment products to a wide range of client bases, has now recognised the need for a regulated and secure way to offer Bitcoin exposure to investors.

Bitwise and Fidelity Investments are also making moves in the Bitcoin ETF territory, realising the tool’s game-changing prospect in 21st century investment portfolios.

Digital asset manager Valkyrie Investments has now amended its spot Bitcoin Exchange Traded Fund (ETF) filing with United States securities regulators. The venture is now aiming to offer investors an opportunity to invest in Bitcoin-backed common shares.

Global investment firm Franklin Templeton, which has approximately USD 1.45 trillion worth of assets under management, has also filed for a spot bitcoin Exchange Traded Fund (ETF) with the SEC.

Not Everyone Is Joining The Race

Despite the rising optimism around the Bitcoin ETF, Vanguard CEO Tim Buckley told CNBC that his venture had no plans to follow suit.

“We won’t be pursuing a Bitcoin ETF. It’s just like we don’t use gold as an asset class for our clients. It’s not that people can’t invest in there. We just look at asset classes or, you know, what belongs in a long-term portfolio, what has intrinsic value, has cash flows to it? And those are the asset classes we steer people towards. And so we don’t go towards bitcoin or gold or any other of those stable assets,” the official remarked further.

The SEC Contention

While the SEC is allowing bitcoin futures ETFs, it has been critical of the cryptocurrency part around the project.

However, in August 2023, Grayscale Investments won its court case against the SEC, which had earlier rejected an application to turn the American digital currency asset management company’s over-the-counter traded bitcoin trust into an ETF.

The SEC, which has consistently expressed concerns about potential market manipulation and investor protection in the crypto market, was asked by a Federal Court to reconsider the stance as the latter reportedly emphasised the similarities between Grayscale’s proposal and the already approved Bitcoin futures ETFs.

Investment research firm Galaxy Digital sees Bitcoin ETFs attract over USD 14 billion in assets within the first year of approval, with this figure potentially rising to USD 39 billion by the third year.

In October 2023, crypto-bull Mike Novogratz told CNBC that it would make zero sense for an ETF to be blocked, as inflows into digital asset funds reportedly jumped to their highest weekly level since July 2022.

The post Meet Bitcoin ETF: Wall Street’s new craze appeared first on International Finance.

He said that despite growing optimism over the regulatory path toward the creation of a spot bitcoin ETF, not every member of Wall Street intends to pursue one, despite the fact that rival asset management companies like BlackRock and Fidelity have applications pending.

During an interaction with CNBC, Tim Buckley said, “We won’t be pursuing a bitcoin ETF. It’s just like we don’t use gold as an asset class for our clients.”

“It’s not that people can’t invest in there. We just look at asset classes or, you know, what belongs in a long-term portfolio, what has intrinsic value, has cash flows to it? And those are the asset classes we steer people towards. And so we don’t go towards bitcoin or gold or any other of those stable assets,” Tim Buckley added.

Vanguard believes that the investment case for cryptocurrencies is weak, a spokesman subsequently told Business Insider India.

“Unlike stocks and bonds, most cryptocurrencies lack intrinsic economic value and generate no cash flows, such as interest payments or dividends. Further, cryptocurrencies have proven to be highly volatile, which runs counter to Vanguard’s goal to generate positive real returns to investors over time,” Tim Buckley said.

BlackRock’s application for a spot bitcoin ETF is still being reviewed by the Securities and Exchange Commission. Even though the regulator permits bitcoin futures exchange-traded funds (ETFs), it has a critical view of the cryptocurrency industry and has rejected similar applications in the past.

However, Grayscale Investments prevailed in court against the SEC in August after the agency had previously denied an attempt to convert its over-the-counter bitcoin trust into an exchange-traded fund (ETF). The court ruling gave rise to expectations that the regulatory roadblocks would soon be removed, enabling the approval of a spot bitcoin ETF.

The post Vanguard CEO Tim Buckley says no plan to pursue bitcoin ETF appeared first on International Finance.