In a significant move among major Wall Street banks, Morgan Stanley will soon allow financial advisers to offer Bitcoin ETFs to certain clients, CNBC reported. ReportsStarting Wednesday, the firm’s 15,000 advisors will be able to recommend BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to their target clients.
BREAKING: Morgan Stanley tells wealth advisers they can pitch #Bitcoin ETFs, CNBC reports. 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 remains cautious on Bitcoin. According to CNBC sources, only clients with a net worth of more than $1.5 million, high risk tolerance and interest in speculative investments will be invited to participate in the Bitcoin ETF. These investments are limited to taxable brokerage accounts, not retirement accounts. The bank plans to monitor clients’ Bitcoin holdings to prevent excessive exposure to this volatile asset class.
Other major banks, including Goldman Sachs, JPMorgan, Bank of America and Wells Fargo, continue to restrict their advisers from promoting a bitcoin ETF unless specifically requested by a client, the report said.
This decision marks an important step towards the institutional adoption of Bitcoin in traditional finance. Morgan Stanley’s offering of these ETFs reflects Bitcoin’s increasing integration into mainstream finance and sets a precedent for other asset management firms to follow.
