Morgan Stanley Allows Advisors to Offer Bitcoin ETFs
Morgan Stanley has set a new milestone in the financial industry by becoming the first major Wall Street bank to allow its financial advisors to offer Bitcoin exchange-traded funds to clients. This move, which took effect on August 7, 2024, allows the bank’s more than 15,000 financial advisors to market Bitcoin ETFs to eligible Morgan Stanley clients.
According to a report by CNBC, Morgan Stanley has granted permission to its advisors to offer spot Bitcoin ETFs to electronic clients, making it the first Wall Street banking giant to take such a step in response to increasing demand.
Morgan Stanley’s Criteria for Bitcoin ETF Eligibility
While Morgan Stanley now permits its advisors to solicit Bitcoin ETFs for clients, there are certain criteria that clients must meet in order to be eligible. To qualify, individuals must have a net worth of $1.5 million or more, exhibit an aggressive risk tolerance, and express an interest in speculative investments.
Furthermore, the bank has specified that these Bitcoin ETFs can only be invested in customers’ taxable brokerage accounts rather than their retirement accounts.
The Spotlight on Spot Bitcoin ETF Market
Among the 11 spot exchange-traded funds approved for trading by the U.S. Securities and Exchange Commission in January 2024, both BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) stand out. These ETFs serve as investment vehicles for those seeking exposure to Bitcoin through a user-friendly and accessible platform.
As of the latest data, the U.S. Spot Bitcoin ETF holds a total of $57.2 in net assets, with cumulative net inflows reaching $17.5 billion by August 2, 2024. However, there have been net outflows from spot Bitcoin ETFs, exceeding $237 million, with Fidelity’s IBIT experiencing outflows of more than $104 million. On the other hand, BlackRock’s IBIT reported inflows of $42.8 million.
