Global investment bank Morgan Stanley MS has actively pitched stocks and investments tied to Bitcoin BTC/USD to its clients this year, despite executive chairman James Gorman's skepticism about the leading cryptocurrency’s potential.
What happened: Earlier this year, Gorman, who stepped down from his CEO role after a 14-year stint, famously discussed his reservations about Bitcoin's investment appeal.
"It should play for wealthy people a very small role in their financial fabric because it's so speculative, it's so volatile," Gorman had said.
"I just don't think it's a core investment. I think it's a speculative asset of which there are plenty of choices."
These remarks were made before the first-ever Bitcoin exchange-traded funds (ETFs) opened for trading on Wall Street.
A lot has changed since then.
Why It Matters: About seven months after the launch in early January, the banking giant authorized its vast network of financial advisors, about 16,000 strong, to recommend Bitcoin ETFs to clients.
It’s worth mentioning that only clients with a net worth exceeding $1.5 million and a high-risk tolerance will be eligible for these Bitcoin ETF offerings. Moreover, the bank would monitor clients' cryptocurrency holdings to prevent excessive exposure.
According to the recent 13F filing with the SEC, the firm revealed substantial exposure to Bitcoin ETFs, worth roughly $189 million, with the largest position in IBIT.
Morgan Stanley did not immediately respond to Benzinga’s request for comment.
Price Action: At the time of writing, Bitcoin was exchanging hands at $67,125, up 2.25% in the last 24 hours, according to data from Benzinga Pro. Shares of Morgan Stanley closed 0.053% lower at $112.22 during Tuesday's regular trading session.
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