In a major move by major Wall Street banks, Morgan Stanley will soon allow its financial advisors to offer Bitcoin ETFs to certain clients, CNBC reportsStarting Wednesday, the firm’s 15,000 advisors will be able to promote BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible clients.
BREAKING: Morgan Stanley tells wealth advisors they can pitch their ideas #Bitcoin ETFs, CNBC reports. photo.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 at least $1.5 million in net worth, a high risk appetite and an interest in speculative investments are eligible to apply for Bitcoin ETF applications, sources told CNBC. These investments are limited to taxable brokerage accounts, not retirement accounts. The bank will monitor clients’ Bitcoin holdings to avoid excessive exposure to the volatile asset class.
Other major banks, including Goldman Sachs, JPMorgan, Bank of America and Wells Fargo, still limit their advisors’ recommendations for bitcoin ETFs unless explicitly requested by clients, the report said.
This decision marks a significant step toward institutional adoption of bitcoin in traditional finance. Morgan Stanley’s offering of these ETFs reflects the growing integration of bitcoin into mainstream finance and sets a precedent for other asset management firms to follow.