Morgan Stanley is set to provide its wealthy clients with access to Bitcoin ETFs, choosing two prominent providers for this venture.
Bitcoin’s growing influence and increasing adoption have been significantly bolstered by exchange-traded funds (ETFs) that track its performance. In a notable development, Morgan Stanley has informed its financial advisors that they will soon be able to offer Bitcoin ETFs to their affluent clients.
Earlier this year, the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs. These products have since attracted nearly $18 billion in assets under management from a diverse range of investors, including institutional entities such as pension funds.
Morgan Stanley, a major player in the US banking sector with a history of supporting the cryptocurrency industry, is the latest institution to enter the Bitcoin ETF market. According to CNBC, the bank has notified its approximately 15,000 financial advisors that, starting August 7, they can offer clients the opportunity to invest in two spot Bitcoin ETFs.
The chosen ETFs are among the largest in the market: BlackRock’s IBIT, which has over $20 billion in assets under management (AUM), and Fidelity’s FBTC, with nearly $10 billion in AUM.
The decision by Morgan Stanley is reportedly in response to increasing client demand for exposure to Bitcoin through SEC-approved ETFs. However, these investment opportunities will be limited to a specific group of investors. Eligible clients must have a net worth exceeding $1.5 million, possess an aggressive risk tolerance, and be interested in speculative investments.
It’s also noteworthy that Morgan Stanley has previously invested in Bitcoin ETFs. In May, it was reported that the bank had allocated $269 million to Grayscale’s GBTC.
