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Morgan Stanley is set to enable its financial advisers to offer spot Bitcoin exchange-traded funds (ETFs) to select clients as early as next week. This development, confirmed by an insider, reflects the firm’s strategy to tap into the burgeoning digital asset market.
In an internal memo, Morgan Stanley informed its 15,000 advisers that they are now authorized to present investment options such as BlackRock Inc.’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to eligible clients.
The firm has set specific criteria for clients who can invest in these ETFs. Only individuals with a net worth of at least $1.5 million, a high-risk tolerance, and a clear intention to invest in speculative assets are eligible to be approached. This selective approach highlights Morgan Stanley’s cautious but progressive stance towards digital assets, ensuring that only those who meet these criteria are offered the opportunity.
Morgan Stanley’s decision to offer Bitcoin ETFs aligns with the broader trend of increasing institutional interest in digital assets. Since the SEC’s approval in January, spot Bitcoin ETFs have surpassed expectations in terms of asset growth and net inflows. BlackRock’s IBIT has accumulated nearly $22 billion in assets, while Fidelity’s FBTC has attracted $11 billion. Collectively, U.S. Bitcoin ETFs have seen nearly $18 billion in net inflows, setting a record for this fund category.
This strategic move by Morgan Stanley could pave the way for other financial institutions to explore digital asset offerings, as the cryptocurrency market continues to gain mainstream traction. By tapping into this evolving sector, Morgan Stanley is positioning itself at the forefront of financial innovation and client investment opportunities.