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Morgan Stanley Bitcoin Trust losses skewed by unrealized Bitcoin depreciation
MSBT’s net assets from operations fell $66.8 million over its first 85 days, with nearly $66.2 million, or about 99%, driven by unrealized Bitcoin depreciation.
Morgan Stanley Bitcoin Trust, or MSBT, reported a $66.8 million decrease in net assets from operations during its first 85 days, even as the trust received $371.1 million in gross share contributions and only $5.3 million in redemption distributions, according to a filing highlighted by CryptoSlate.
The filing attributes nearly the entire operating-period decline to unrealized Bitcoin depreciation, totaling $66.17 million, or about 99% of the decrease. The remainder included $618,611 in realized Bitcoin losses and $72,288 in sponsor fees, which helps explain why the $66.86 million accounting result differs from an ETF outflow measure.
On valuation, MSBT’s net asset value per share fell 14.01%, from $19.70 to $16.94, while CoinDesk’s Bitcoin benchmark declined 13.98% over the same period. At quarter-end, the trust held 5,059.3077 BTC with a $365.18 million cost basis and a $299 million fair value, based on a Bitcoin price of $59,101.49.
The trust issued 17.9 million shares and redeemed 250,000 during the reporting period, and ended June with 17.65 million shares outstanding. CryptoSlate notes the trust had completed its first trading month without daily redemptions, though the later redemption baskets ended that streak, and the filing does not identify whether retail activity drove redemptions.
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