Beginning August 7, Morgan Stanley will let its financial advisors offer Bitcoin Exchange-Traded Funds (ETFs) to clients who are qualified. CNBC says this makes Morgan Stanley the first significant Wall Street bank to accept Bitcoin ETFs in this way.
Morgan Stanley has taken a significant step forward since the SEC approved 11-spot Bitcoin ETFs in January. Now, nearly 1,500 financial planners can ask clients to buy shares in BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Morgan Stanley Embraces Bitcoin
Bitcoin ETFs will only be available to clients who meet certain requirements, such as having a net worth of at least $1.5 million, being willing to take on a lot of risk, and liking investments that are based on speculation. These investments can be made in taxable brokerage accounts only, not in retirement funds.
This smart move by Morgan Stanley points to a shift toward more regular people using Bitcoin. It means that more investors are becoming interested in cryptocurrencies like Bitcoin. This implies that richer people can purchase Bitcoin, which could increase demand.
“15,000 of the best-compensated salespeople in the world will harvest the richest families and institutions in the world and put them into Bitcoin. I predict a $3 trillion market cap inbound to Bitcoin in under 18 months.” Gary Cardone, an investor, wrote on X (formerly Twitter) in response to the news.
A spot crypto ETF, which makes investments in that cryptocurrency from portfolio funds, tracks the price of a particular cryptocurrency. These funds are bought and sold on public markets, and their success usually matches that of the cryptocurrency they follow. Crypto ETFs can be bought and sold on regular stock exchanges, just like other funds that are similar. This means that investors can hold them in normal brokerage accounts. Bitcoin ETFs let buyers get exposure to Bitcoin without actually holding the cryptocurrency.
Morgan Stanley is not only adding more services, but it is also playing a key role in integrating cryptocurrency into traditional investment accounts. This could have significant consequences for the future of Bitcoin investments made by regular people.
