In a major move among Wall Street’s biggest banks, Morgan Stanley will soon allow its financial advisers to offer bitcoin exchange-traded funds to certain clients, according to CNBC. ReportsStarting Wednesday, the firm’s 15,000 advisors will be able to offer exposure to BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible clients.
BREAKING: Morgan Stanley Tells Wealth Advisors They Can Make an Offer #Bitcoin Exchange-traded funds, according to a report by CNBC. pic.twitter.com/2tgSeR2yEm
— Bitcoin Magazine (@BitcoinMagazine) August 2, 2024
Morgan Stanley’s move comes in response to high client demand for bitcoin. However, the bank is still taking a cautious approach to bitcoin: Only clients with a net worth of at least $1.5 million, a high tolerance for risk, and an interest in speculative investments are eligible to receive orders for bitcoin ETFs, sources told CNBC. Such investments are limited to taxable brokerage accounts, not retirement accounts. The bank will monitor clients’ bitcoin holdings to prevent overexposure to the volatile asset class.
Other major banks, including Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo, continue to bar their advisors from promoting bitcoin ETFs unless clients explicitly request them, the report said.
This decision represents a significant step towards institutional adoption of Bitcoin in traditional finance. Morgan Stanley’s launch of these ETFs reflects the growing integration of Bitcoin into mainstream finance and sets a precedent that other wealth management firms should follow.