According to CNBC: Morgan Stanley announced on Friday that it will soon permit its financial advisors to offer Bitcoin exchange-traded funds (ETFs) to eligible clients, becoming the first major Wall Street bank to do so. Starting August 7, the firm's approximately 15,000 financial advisors will be able to solicit qualified clients to purchase shares of two specific Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, according to sources familiar with the matter.
This move marks a significant step in the mainstream adoption of Bitcoin within traditional finance. The decision comes after the U.S. Securities and Exchange Commission approved applications for 11 spot Bitcoin ETFs earlier this year, signaling a new era of accessible and tradable Bitcoin investment vehicles. Despite the initial reluctance from major wealth management firms to embrace these products—often limiting their availability only to clients who actively sought them—Morgan Stanley is responding to growing client demand and evolving market dynamics for digital assets.
However, the bank is approaching this rollout with caution. Only clients with a net worth of at least $1.5 million, a high risk tolerance, and a willingness to engage in speculative investments will be eligible for solicitation regarding these Bitcoin ETFs. Additionally, these investments will only be available for taxable brokerage accounts, not retirement accounts.
Morgan Stanley will closely monitor clients' crypto holdings to ensure they do not become overly exposed to the volatile asset class. The bank's approved crypto investments are currently limited to the aforementioned Bitcoin ETFs from BlackRock and Fidelity. The bank had previously offered private funds from Galaxy and FS NYDIG but phased them out earlier this year.
As the market for newly approved Ether ETFs develops, Morgan Stanley has not yet committed to offering access to these products. This cautious yet proactive approach indicates a broader trend of increasing interest and involvement in digital assets among traditional financial institutions.
