Morgan Stanley leads Wall Street in offering Bitcoin ETFs to clients
On Friday, Morgan Stanley announced that it will allow its financial advisers to offer Bitcoin ETFs to certain clients, becoming the first major Wall Street bank to do so. This move is seen as a significant step towards the mainstream adoption of Bitcoin in the financial industry.
Morgan Stanley allows promotion of Bitcoin ETF to clients
This decision comes as the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETF applications in January last year, making Bitcoin trading easier and more cost-effective. Morgan Stanley’s move is driven by customer demand and a desire to stay ahead in the evolving digital asset market.
Client Eligibility and Monitoring
Morgan Stanley will only recommend Bitcoin ETFs to clients with net assets of $1.5 million or more, a high risk tolerance, and an interest in speculative investing. These recommendations are limited to taxable brokerage accounts, excluding retirement accounts. The bank will also monitor clients’ cryptocurrency holdings to prevent over-exposure to this volatile asset class.
Bitcoin ETF Performance
BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, the two Bitcoin ETFs approved by Morgan Stanley, have already amassed significant assets under management. IBIT has raised nearly $18 billion since its launch, while FBTC has raised $11 billion. Overall, U.S. Bitcoin ETFs have a combined total of over $49 billion in assets.
Future Outlook
Morgan Stanley is closely monitoring the Ethereum ETF market, but has not made a decision on providing access to it yet. Earlier this year, the bank phased out Galaxy and FS NYDIG private equity issuances, demonstrating its continued evolution in the digital asset space.
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