Bitcoin is coming to Wall Street’s doorstep and Morgan Stanley is leading the charge.
Morgan Stanley is set to permit its financial advisors to offer spot bitcoin exchange-traded funds (ETFs) to select clients, as reported by CNBC.
This initiative marks a first for major Wall Street banks. Starting August 7, Morgan Stanley will allow its financial advisors to recommend shares of two spot bitcoin ETFs — BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund — to eligible clients, according to sources familiar with the bank’s internal policy decisions.
Sources indicated that this decision was driven by client demand. However, only clients with a net worth of at least $1.5 million, a strong risk tolerance, and an interest in speculative investments will be eligible.
These investments will be restricted to taxable brokerage accounts and will not be available for retirement accounts.
Additionally, Morgan Stanley plans to monitor client crypto holdings to prevent overexposure to the asset class. The bank will also keep a close watch on the progress of the newly approved spot Ethereum ETFs but has yet to decide on offering access to those products.
Morgan Stanley’s decision to offer spot bitcoin ETFs to clients marks a significant turning point for the cryptocurrency. Once a fringe asset, bitcoin has weathered intense scrutiny and market volatility to gain a foothold in traditional finance.
The recent approval of spot bitcoin ETFs by the SEC has accelerated this trend, but many Wall Street giants initially hesitated to fully embrace these new investment vehicles. However, with Morgan Stanley, one of the world’s leading wealth managers, now actively promoting bitcoin ETFs, it’s clear that the digital currency is increasingly seen as a viable asset class.
