Starting today, Morgan Stanley’s wealth advisors can actively pitch two spot bitcoin exchange-traded funds (ETFs) to some of their clients, according to CNBC. The advisors will solicit investments into BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) from eligible clients. This marks a significant shift in the traditional finance industry’s approach to digital assets.
Eligibility Criteria for Clients
To qualify for these investments, clients must meet specific criteria:
- Net Worth: At least $1.5 million
- Risk Tolerance: High
- Investment Interest: Speculative assets
Significance of Morgan Stanley Advisors’ Move
This move is a major step forward for the adoption of digital assets within the traditional finance industry. When spot bitcoin ETFs began trading in January, some brokerages like Fidelity and Charles Schwab offered them outright. Larger brokerages such as Morgan Stanley took a more cautious approach, restricting the products to select clients on an unsolicited basis. Now, for the first time, Morgan Stanley advisors can actively market these spot bitcoin funds, potentially increasing their adoption. Read more on this in our previous update here
Impact on Bitcoin ETFs
Spot bitcoin ETFs have amassed over $17.7 billion in net inflows since they began trading. The iShares and Fidelity bitcoin ETFs have attracted the most funds, with $20 billion and nearly $10 billion in investor money flowing in, respectively, according to Farside Investors.
Broader Implications
This development could set a precedent for other digital assets. Recently, spot ether ETFs also became available for trading at brokerages like Fidelity and Schwab. It remains unclear if Morgan Stanley’s advisors will be allowed to propose investments in spot ether ETFs in the future.
