Morgan Stanley’s financial advisors will have the ability to provide Bitcoin ETFs to clients who are eligible.
On Friday, CNBC reported that Morgan Stanley, a prominent investment bank and wealth management firm, will permit its financial advisors to actively promote Bitcoin exchange-traded funds (ETFs) to eligible clients. The report cited sources with knowledge of the policy. A few of examples of first offerings include the iShares Bitcoin Trust (IBIT) by BlackRock and the Wise Origin Bitcoin Fund (FBTC) by Fidelity.
The report stated that advisors will be able to recommend shares of FBTC and IBIT starting on August 7. The offer will be restricted to customers who possess a high-risk tolerance, a net worth of at least $1.5 million, and a preference for speculative investments.
In April, Morgan Stanley announced that they were considering policy modifications to allow their 15,000 brokers to recommend Bitcoin ETFs to their clients. A response to the increasing demand for Bitcoin ETFs, the most recent action has the potential to increase the inflows into these funds.
The bank intends to become the first major Wall Street bank to provide Bitcoin ETFs to its upper-income clients. The decision may induce industry colleagues to imitate it. Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo are among the other banking titans that continue to limit access to Bitcoin ETFs to client initiation.
Morgan Stanley’s posture remains conservative, despite the new offer. The bank will restrict these investments to taxable accounts and supervise clients’ crypto holdings to prevent any excessive exposure.
Morgan Stanley has previously disclosed that it holds approximately $270 million in Bitcoin ETF investments, with a primary focus on Grayscale’s Bitcoin Trust (GBTC). Additionally, Ark Invest’s spot Bitcoin ETF (ARKB) features a modest allocation at the bank.
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