Morgan Stanley Takes Bold Step Into Crypto Market, Offering Bitcoin ETFs To Select Clients

Morgan Stanley MS has announced plans to allow its financial advisors to offer Bitcoin BTC/USD ETFs to certain clients.

What Happened: This decision, set to take effect on Wednesday, marks a significant departure from the cautious stance maintained by other major financial institutions, CNBC reported.

According to sources familiar with the matter, Morgan Stanley’s vast network of approximately 15,000 financial advisors will soon have the green light to recommend two specific exchange-traded Bitcoin funds: BlackRock’s iShares Bitcoin Trust IBIT and Fidelity’s Wise Origin Bitcoin Fund FBTC.

This development comes on the heels of the U.S. Securities and Exchange Commission’s January approval of 11 spot bitcoin ETFs, which has been hailed as a watershed moment for cryptocurrency integration into mainstream finance.

Despite persistent skepticism from high-profile figures like JPMorgan JPM Chase CEO Jamie Dimon and Berkshire Hathaway‘s Warren Buffett, Bitcoin has demonstrated resilience in the face of market volatility and industry setbacks, such as the collapse of crypto exchange FTX.

Morgan Stanley’s decision stands in contrast to the policies of other major banks.

A spokesperson for Morgan Stanley stated, “We’re responding to client demand and adapting to the evolving digital asset marketplace.”

Also Read: Bitcoin, Ethereum ETFs Record Net Inflows On Thursday As Ark Invest Rebalances Portfolio

However, the bank is proceeding with caution.

Only clients with a net worth exceeding $1.5 million and a high risk tolerance will be eligible for these Bitcoin ETF offerings.

Furthermore, these investments will be limited to taxable brokerage accounts, excluding retirement portfolios.

“We’re implementing strict monitoring measures to ensure our clients’ crypto exposure remains within reasonable limits,” a source within Morgan Stanley explained.

At present, Morgan Stanley’s approved crypto investments are limited to the two aforementioned Bitcoin ETFs and select private funds from Galaxy and FS NYDIG, which have been available since 2021.

As the crypto landscape continues to evolve, Morgan Stanley is keeping a close eye on the nascent market for Ether ETFs, though no commitments have been made regarding their potential inclusion in the bank’s offerings.

What’s Next: This development in the integration of cryptocurrency into traditional finance underscores the importance of platforms like Benzinga’s Future of Digital Assets event, scheduled for Nov. 19.

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