Morgan Stanley to sell bitcoin ETFs to clients

abdelaziz Fathi

Morgan Stanley may soon allow its 15,000 brokers to recommend bitcoin ETFs to their clients, as reported by AdvisorHub.

Morgan Stanley

The Wall Street firm permitted purchases of bitcoin ETFs following their approval earlier this year but only if clients requested them. Now, Morgan Stanley plans to let brokers actively suggest these ETFs to clients.

The shift reflects growing demand for these ETFs, which let investors gain from bitcoin without direct exposure. “We’re going to make sure that we’re very careful about it…we are going to make sure everybody has access to it. We just want to do it in a controlled way,” a Morgan Stanley executive told AdvisorHub.

In January, the SEC approved 11 spot bitcoin ETFs from companies including BlackRock, Fidelity, and Invesco. These approvals led to significant initial investment inflows into bitcoin, though these have since slowed, with BlackRock’s ETF experiencing no new inflows on a recent Wednesday.

Morgan Stanley’s new policy could fuel interest and investment flows into bitcoin ETFs. The firm is setting up procedures for these recommended purchases, focusing on risk tolerance and trading limits, though no specific timeframe for these changes has been provided.

Following their January introduction, major firms like Morgan Stanley, Merrill Lynch, and Wells Fargo have offered bitcoin ETFs on an unsolicited basis. According to SoSoValue, U.S.-traded spot bitcoin ETFs hold over $53.6 billion in assets under management, with significant inflows still being recorded.

Morgan Stanley is a leader in the alternative investment and private market space with over $150 billion in assets under management. In 2021, it became the first major U.S. bank to offer bitcoin fund access to its wealthy clients. The bank confirmed in its first-quarter earnings call that it was offering exposure to bitcoin through external crypto funds, such as those offered by Galaxy Digital and NYDIG.

The addition of bitcoin ETFs to its platform aligns with Morgan Stanley’s strategic focus on wealth management, which is less dependent on capital markets and offers less volatile revenue sources. The company’s expansion efforts, including the acquisitions of Eaton Vance, E*Trade Financial, and Shareworks, reflect this focus. The wealth management segment recorded a compound annual growth rate (CAGR) of 17.4% in total client assets over the past five years (2018-2023).


Read this next

Industry News

T+1 settlement goes live today in Canada, Mexico, Argentina

“Shortening the time between the trade date and settlement date reduces risk in the system, and the industry has worked hard to prepare for this important change.”

Industry News

DanFX’s Daniel Farook Ali sentenced to 7 years after extradition

The Court sentenced Mr Ali to seven years and three months imprisonment, with eligibility for parole from 5 July 2024.

Market News

Global Currency Market Dynamics Influenced by US Bond Market Volatility

The recent turbulence in the US bond market has benefited the USD.


Top 5 ICOs that are Likely to Explode in the Current Bull Run 2024

Explore top upcoming ICOs: BlockDAG, GBTC, TUK, SCOTTY, and SPONGE. Learn about their potential high returns and unique features.


BlockDAG’s Revolutionary Dev Release 36: Off-Chain PoW and a $30 Projection by 2030

Explore BlockDAG’s latest off-chain PoW innovation and its $32M presale success. Projected to reach $30 by 2030.


30,000x ROI Potential: BlockDAG Secures $33.5M in Presale, Outruns Retik Finance’s Bitmart Performance

Uncover how BlockDAG’s impressive $33.5M presale and its innovative platform draw investors away from Retik Finance following the Bitmart listing.


IT Professional Switches to Lucrative Crypto Mining Entrepreneur with BlockDAG’s Advanced Mining Technology

Learn how an IT pro turned Litecoin mining into a fortune. See if BlockDAG can match this with advanced mining tech and 30,000X ROI potential.


May 2024 Crypto Spotlight: Why Whales Are Choosing BlockDAG Over Retik Finance, Will CoinW & P2B Listing Save $RETIK?

Uncover why BlockDAG is winning over smart investors in May 2024, and surpassing Retik Finance’s performance on exchanges like CoinW and P2B.


Ethereum Leads Altcoins Toward a Huge Rally: Expert Top Picks for Altseson Unveiled

A fresh surge in alternative cryptocurrencies is building momentum as Ethereum leads the charge.