Morgan Stanley has become the first major Wall Street bank to approve Bitcoin ETFs for sale to some clients.
While popular banking giants have restricted bitcoin ETFs, famous U.S. investment bank and asset manager Morgan Stanley has told its financial advisers that it will soon allow them to pitch and offer Bitcoin Exchange-Traded Funds (ETF) to selected eligible clients. The company is set to allow clients to purchase two ETFs, BlackRock’s IShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
Morgan Stanley to Offer BTC to Wealthy Clients
According to reports from CNBC, Morgan Stanley has given its financial advisers the go-ahead to offer Bitcoin ETFs to eligible clients. To qualify for the Bitcoin ETF offers, clients must have at least $1.5 million in assets under management by the company.
Officials familiar with the matter revealed, “Only clients with a net worth of at least $1.5 million, an aggressive risk tolerance, and the desire to make speculative investments are suitable for bitcoin ETF solicitation. The investments are for taxable brokerage accounts, not retirement accounts.” This move will be effective starting Wednesday, August 7.
According to reports, Morgan Stanley is allowing its more than 15,000 financial advisers to offer shares of the two most actively buying bitcoin ETFs, BlackRock’s IBIT and Fidelity’s FBTC, to clients that meet the requirements. Before the announcement, the asset manager held about $269.9 of Grayscale’s Bitcoin Trust (GBTC).
Morgan Stanley holds over $1.5 trillion of clients’ assets under management (AUM). With its already-built fame in the American financial market, many investors consider this a smart move. As the reports revealed, the strategic move is in response to clients’ demands for crypto products.
Since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETFs in January, they have taken in over $17 billion. Morgan Stanley’s move is a significant step towards cryptocurrency adoption in the traditional financial world, as it makes it even easier for investors to purchase bitcoins via ETFs. Notably, the two ETFs offered by Morgan Stanley have recorded the most inflows in crypto ETF history. IBIT has taken in over $20 billion, while FBTC has inflowed $9.9 billion.
