Morgan Stanley has made history by becoming the first major Wall Street bank to allow its financial advisors to offer spot Bitcoin exchange-traded funds (ETFs) to wealthy clients. This move, which was reported by CNBC, allows the bank’s over 15,000 financial advisors to sell shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to clients with a net worth of at least $1.5 million.
This decision comes after months of careful consideration, as the bank has been exploring the possibility of offering Bitcoin ETFs since April in response to increasing client demand for these investment products. Previously, clients had to initiate transactions to access these financial investments, but now, Morgan Stanley is taking the proactive step of allowing its advisors to actively promote them.
In order to qualify for investments in these spot Bitcoin ETFs, interested clients must not only meet the high net worth requirement but also demonstrate a significant risk tolerance and interest in speculative investments. Additionally, investments in these ETFs are limited to taxable brokerage accounts and cannot be made through retirement accounts. The bank will also keep a close eye on clients’ crypto holdings to ensure that they do not become overly exposed to this asset class.
Market experts see Morgan Stanley’s move as a positive development for the crypto industry, particularly in light of the success of Bitcoin ETFs. Nate Geraci, president of ETF Store, highlighted the impressive performance of spot Bitcoin ETFs, stating that these products have broken industry launch records despite facing some challenges. Similarly, Bloomberg senior ETF analyst Eric Balchunas described the bank’s decision as a significant development given that Morgan Stanley’s advisors manage a total of $5.7 trillion in client assets.
Overall, Morgan Stanley’s decision to offer spot Bitcoin ETFs to wealthy clients is a significant milestone for the crypto industry and a reflection of the growing demand for these investment products among investors. With this move, the bank is not only meeting the needs of its clients but also positioning itself at the forefront of the evolving financial landscape.