- Morgan Stanley has thrown its hat into the crypto ETF ring, with the financial institution offering access to two spot Bitcoin funds.
- Financial advisors operating under Morgan Stanley’s banner can sell BlackRock’s IBIT or Fidelity’s FBTC to wealthy clients.
- Only those with net worths of over US $1.5m can add the spot ETFs to their portfolios via Morgan Stanley.
Despite fears of a recession creeping into the US economy, institutional involvement in the crypto scene is going from strength to strength. A widespread market crash – which saw BTC fall below US $54k (AU $83k) – wasn’t enough to dissuade major investment bankers Morgan Stanley from announcing its entry into the industry.
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Morgan Stanley marks yet another colossal financial institution dipping its toes into the crypto market, with competitors like BlackRock, Fidelity and Franklin Templeton entrenching themselves in the sector.
Morgan Stanley’s 15,000-Strong Advisory Team Can Sell and Trade Two Spot Bitcoin ETFs
Last Friday morning saw Morgan Stanley – one of the United State’s top 100 biggest companies – promise customers they could access spot Bitcoin ETFs through the institution’s investment management services. Financial advisors working under the Morgan Stanley banner can now sell high net-worth investors two crypto funds, BlackRock’s IBIT and Fidelity’s FBTC.
The move is somewhat tentative, as the ETFs can only be sold to clients with a net worth of over US $1.5m (AU $2.31m). Nevertheless, it is still a positive outcome for the crypto industry that has seen institutional involvement skyrocket following the Jan 11th approval of spot Bitcoin funds in the United States.
Reportedly, Morgan Stanley’s introduction of the two new ETFs came down almost entirely to customer demand, demonstrating an appetite among wealthier investors to diversify their portfolios into digital assets.
Related: AFP: Phishing Scam Compromises Thousands of Australian Crypto Wallets
The wirehouse manages upwards of US $5.7 trillion (AU $8.7 trillion) in customer funds, making it easily one of the largest asset managers in the United States – ranked #6 globally as of 2023.
The crypto market has struggled to course-correct following the negativity around the current macroeconomic conditions. However, providing Morgan Stanley’s huge client base access to the sector may be the first of many steps on the road to recovery.
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