In a groundbreaking move for major Wall Street banks, Morgan Stanley will allow its financial advisors to offer spot Bitcoin exchange-traded funds (ETFs) to eligible clients. According to a report by CNBC, starting August 7, Morgan Stanley’s 15,000 financial advisors will be able to solicit clients to purchase shares of BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
HNWI Clients with High-Risk Tolerance
Unlike Morgan Stanley, other major Wall Street banks such as Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo have not yet permitted their advisors to pitch Bitcoin ETFs. These institutions only allow Bitcoin ETF trades if clients specifically request them, reflecting a cautious approach toward digital assets.
Morgan Stanley’s move is also cautious, as only clients with a net worth of at least $1.5 million and a high-risk tolerance will be eligible to invest in these Bitcoin ETFs. Furthermore, these investments will be restricted to taxable brokerage accounts. The bank will closely monitor clients’ crypto holdings to ensure balanced investment portfolios and avoid excessive exposure to the volatile asset class.
Despite the approval of several Ethereum ETFs, Morgan Stanley has not yet decided to offer them. The bank is reportedly observing the market development of these products before making any commitments.
Morgan Stanley Ready for Bitcoin ETF Recommendations
Earlier this year, in April, Morgan Stanley considered allowing brokers to actively recommend Bitcoin ETFs. AdvisorHub reported that the company was developing new safeguards for solicited purchases, according to two senior executives familiar with the plans. These safeguards include setting risk tolerance criteria, imposing limits on allocation, and regulating trading frequency. However, the executives did not specify when these policy changes would be implemented.
Morgan Stanley’s decision to embrace Bitcoin ETFs marks a significant shift in the financial landscape, potentially paving the way for broader acceptance of digital assets among top financial firms.
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