- The bank adopts a cautious strategy while introducing Bitcoin ETFs.
- Eligible clients will be able to purchase Bitcoin ETFs from Morgan Stanley’s financial advisors.
- Clients with aggressive investing profiles and a minimum net worth of $1.5 million are the only ones eligible for this product.
According to CNBC’s story on Friday, which was based on sources with knowledge of the policy, prominent investment bank and wealth management company Morgan Stanley would permit its financial advisors to actively market Bitcoin exchange-traded funds (ETFs) to qualified clients. The first two products are the Wise Origin Bitcoin Fund (FBTC) from Fidelity and the iShares Bitcoin Trust (IBIT) from BlackRock.
According to the source, advisors can start recommending shares in FBTC and IBIT from August 7. Clients who have a net worth of at least $1.5 million, a high tolerance for risk, and a willingness for speculative investments are the only ones eligible for this program.
In April of last year, Morgan Stanley announced that it was considering changing its policies to allow its 15,000 brokers to suggest Bitcoin ETFs to their customers. The most recent action is thought to be a reaction to the rising interest in Bitcoin ETFs and may lead to more money coming into these products.
Rich clients will be able to purchase Bitcoin ETFs from the bank, making it the first significant Wall Street bank to do so. This decision may put pressure on other industry players to do the same. Major financial organizations such as Bank of America, Wells Fargo, JPMorgan, Goldman Sachs, and others still restrict access to Bitcoin ETFs to client initiation.
Morgan Stanley is remaining skeptical despite the fresh offer. To avoid undue exposure, the bank will restrict these investments to taxable accounts and keep an eye on its clients’ cryptocurrency holdings.
Prior to now, Morgan Stanley revealed that it had about $270 million invested in Bitcoin ETFs, mostly in Grayscale’s Bitcoin Trust (GBTC). Additionally, the bank owns a little portion of the spot Bitcoin ETF (ARKB) offered by Ark Invest.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
