Key Takeaways
- Morgan Stanley’s financial advisors can now offer bitcoin ETFs to eligible clients.
- The offering is limited to clients with a minimum net worth of $1.5 million and aggressive investment profiles.
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.Despite this 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.Morgan Stanley’s latest move marks a major step in the mainstream adoption of Bitcoin by traditional financial institutions. The bank reportedly mulled policy changes to enable its 15,000 brokers to actively recommend Bitcoin ETFs to their clients.
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).
