Morgan Stanley greenlights Bitcoin spot ETF offerings for wealth advisors

Source: Crypto Briefing

Morgan Stanley, the top-tier investment bank and wealth management firm, will allow its financial advisors to actively promote Bitcoin exchange-traded funds (ETFs) to eligible clients, CNBC reported Friday, citing sources with knowledge of the policy. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) are initial offerings.

Starting August 7, advisors can recommend shares of IBIT and FBTC, the report said. The offering will be exclusive to clients with a net worth of at least $1.5 million, a high-risk tolerance, and a desire for speculative investments.

Morgan Stanley said in April they were mulling policy changes to enable its 15,000 brokers to recommend Bitcoin ETFs to their clients. The latest move is seen as a response to the growing demand for Bitcoin ETFs and could potentially increase inflows into these funds.

Despite the new offering, Morgan Stanley maintains a cautious stance. The bank will limit these investments to taxable accounts and monitor clients’ crypto holdings to prevent excessive exposure.

Other major banks like Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo still restrict Bitcoin ETF sales to unsolicited client requests.

Morgan Stanley previously disclosed holding approximately $270 million in Bitcoin ETF investments, primarily in Grayscale’s Bitcoin Trust (GBTC). The bank also has a small allocation to Ark Invest’s spot Bitcoin ETF (ARKB).

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Author: Vivian Nguyen