Morgan Stanley is set to become the first major Wall Street bank to allow its financial advisors to offer Bitcoin ETFs to certain eligible clients, starting next Wednesday.
Expanding Bitcoin Access
Starting next Wednesday, Morgan Stanley’s 15,000 financial advisors will be able to offer shares of two Bitcoin exchange-traded funds: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible clients.
Meeting Client Demand
This significant move by one of the world’s largest wealth management firms underscores Bitcoin’s growing acceptance in mainstream finance. The approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in January has made Bitcoin more accessible and easier to trade.
“This move is in response to client demand and our desire to keep pace with the evolving digital asset marketplace,” CNBC reported, citing a source familiar with the bank’s policies.
Eligibility and Risk Management
Initially, Morgan Stanley’s wealth management competitors, including Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo, were cautious about offering the new ETFs. However, driven by high client demand, Morgan Stanley decided to proceed, albeit with caution.
Only clients with a net worth of at least $1.5 million, a high risk tolerance, and an interest in speculative investments are eligible for Bitcoin ETF solicitations. These investments are restricted to taxable brokerage accounts, excluding retirement accounts. Additionally, the bank will monitor clients’ crypto holdings to prevent excessive exposure to this volatile asset class.
Approved Investments and Future Plans
Currently, the only approved crypto investments at Morgan Stanley are the Bitcoin ETFs from BlackRock and Fidelity. Earlier this year, Morgan Stanley phased out private funds from Galaxy and FS NYDIG, which had been available since 2021. The bank is also evaluating the market for newly approved Ethereum ETFs and has not yet decided whether it will offer access to those.
