Introduction
Morgan Stanley, a major Wall Street bank, recently made a groundbreaking decision to allow its financial advisors to offer Bitcoin exchange-traded funds (ETFs) to clients. This move marks a significant step in the acceptance and adoption of cryptocurrencies in traditional financial institutions.
Details of the Decision
Starting August 7, 2024, Morgan Stanley’s more than 15,000 financial advisors will have the ability to market Bitcoin ETFs to eligible clients. This decision comes as a response to the growing demand for digital assets and provides clients with new investment opportunities in the crypto market.
According to a report by CNBC, Morgan Stanley has selected two funds for its advisors to market – BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). However, not all clients will have access to these ETFs; only qualified individuals with a net worth of $1.5 million or more and an aggressive risk tolerance will be eligible.
The Spot Bitcoin ETF Market
IBIT and FBTC are part of the 11 spot exchange-traded funds approved for trading by the U.S. Securities and Exchange Commission in January 2024. These ETFs serve as a convenient investment vehicle for those seeking exposure to Bitcoin in a regulated and accessible manner.
As of August 2, 2024, the U.S. Spot Bitcoin ETF holds a total of $57.2 billion in net assets, with cumulative net inflows reaching $17.5 billion. However, data from SoSoValue indicates that spot Bitcoin ETFs experienced net outflows of over $237 million, with Fidelity’s IBIT seeing outflows of more than $104 million.
On the other hand, BlackRock’s IBIT recorded $42.8 million in inflows, showcasing the varied investor sentiment towards Bitcoin ETFs in the market.
