Morgan Stanley As reported by CNBC, the bank told a number of financial advisors on Friday that it will soon allow them to offer a Bitcoin ETF to some clients, making it the first major Wall Street bank to do so.
Starting Wednesday, the firm’s roughly 15,000 financial advisers will be able to solicit qualified clients to buy shares in two publicly listed bitcoin funds, according to people familiar with the matter.
These funds are Black Rock iShares Bitcoin Trust Fidelity The entity is the Wise Origin Bitcoin Fund, according to people familiar with the matter.
The move by Morgan Stanley, one of the world’s largest asset managers, is the latest sign that bitcoin is gaining acceptance in the mainstream financial world. In January, the U.S. Securities and Exchange Commission approved applications for 11 physical bitcoin ETFs, ushering in a more accessible, cheaper to hold and easier to trade vehicle for investing in bitcoin.
Bitcoin It has weathered a market sell-off, the dramatic collapse of cryptocurrency exchange FTX, and criticism from some of the financial world’s most powerful figures. JPMorgan Chase With CEO Jamie Dimon Berkshire Hathaway CEO Warren Buffett.
It is not surprising, then, that the big Wall Street asset managers were slow to embrace the new ETFs, barring their financial advisers from touting them and allowing them to trade only if their clients actively sought out the products.
Goldman SachsJ.P. Morgan, Bank of America and Wells Fargo Spokespeople for the four banks said they were still following that policy.
“Active” Tolerance
Morgan Stanley took the move in response to client demand and to keep up with changes in the market for digital assets, said the people, who asked not to be identified discussing the bank’s internal policy.
However, banks remain cautious about the launch. The Bitcoin ETF is only suitable for clients with net worth of more than $1.5 million, a high risk tolerance and a desire to make speculative investments, the people said. The investments are intended for taxable brokerage accounts, not retirement accounts, they added.
The bank will monitor clients’ crypto holdings to ensure they do not have excessive exposure to the volatile asset class, the people said.
The only two crypto investments approved for solicited purchases at Morgan Stanley are the BlackRock and Fidelity Bitcoin ETFs. The bank’s Galaxy and FS NYDIG private funds, which it began offering in 2021, were phased out earlier this year.
Morgan Stanley is watching how the market for newly approved ethereum ETFs develops and has not said whether it will offer access to them, the people said.
Correction: The Galaxy and FS NYDIG private funds that Morgan Stanley offered since 2021 were phased out earlier this year. An earlier version of this article contained inaccurate information about the firm’s cryptocurrency investment products obtained from a Morgan Stanley source.
