NYDIG and FS submit fund application to SEC, aiming to provide more mainstream Bitcoin funds for Morgan Stanley clients

New York Digital Investment Group (NYDIG) and digital asset investment firm FS Investments are collaborating to submit an application to the U.S. Securities and Exchange Commission (SEC) for a new joint investment fund aimed at providing exposure to Bitcoin assets for clients of the large U.S. bank Morgan Stanley. This fund will allow companies/individuals to invest in Bitcoin exposure assets without the need to take on custody risks.

More Accessible Investment Product

The fund is called "FS NYDIG Institutional Bitcoin Fund LP," launched jointly by NYDIG and FS Investments, and is the fourth (also the second jointly launched by FS and NYDIG) Bitcoin fund related to Morgan Stanley.

According to reports, Morgan Stanley announced in March this year to provide Bitcoin investment products for its high net worth clients, including FS NYDIG Select Fund, Galaxy Bitcoin Fund LP, and Galaxy Institutional Bitcoin Fund LP.

Morgan Stanley is the first large U.S. bank to offer such products. However, since the clients of these funds are high net worth individuals, the entry threshold is quite high, with the minimum investment for the first two funds being $25,000; and a minimum of $5 million is required to purchase Galaxy Institutional Bitcoin Fund LP, making it almost inaccessible to general retail investors.

According to SEC documents, the new fund launched by FS and NYDIG does not have a minimum investment requirement, meaning that all of Morgan Stanley's clients have the opportunity to access this fund, making it more accessible compared to the previous three funds.