The bank sets cautious approach in rolling out Bitcoin ETFs.
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Key Takeaways
- Morgan Stanley's financial advisors can now offer bitcoin ETFs to eligible clients.
- The offering is limited to clients with a minimum net worth of $1.5 million and aggressive investment profiles.
Morgan Stanley, the top-tier investment bank and wealth management firm, will allow its financial advisors to actively promote Bitcoin exchange-traded funds (ETFs) to eligible clients, CNBC reported Friday, citing sources with knowledge of the policy. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) are initial offerings.
Starting August 7, advisors can recommend shares of IBIT and FBTC, the report said. The offer will be exclusive to clients with a net worth of at least $1.5 million, a high-risk tolerance, and a desire for speculative investments.
Morgan Stanley said in April they were mulling policy changes to enable its 15,000 brokers to recommend Bitcoin ETFs to their clients. The latest move is seen as a response to the growing demand for Bitcoin ETFs and could potentially increase inflows into these funds.
The bank is set to become the first major Wall Street bank to offer Bitcoin ETFs to wealthy clients. The decision could pressure industry peers to follow suit. Other banking giants like Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo still restrict Bitcoin ETF access to client initiation.
Despite the new offer, Morgan Stanley maintains a cautious stance. The bank will limit these investments to taxable accounts and monitor clients’ crypto holdings to prevent excessive exposure.
Morgan Stanley previously disclosed holding approximately $270 million in Bitcoin ETF investments, primarily in Grayscale’s Bitcoin Trust (GBTC). The bank also has a small allocation to Ark Invest’s spot Bitcoin ETF (ARKB).