Morgan Stanley unlocks the door to bitcoin ETFs
Morgan Stanley appears poised to become the first major Wall Street bank to allow its financial advisors to offer bitcoin ETFs to clients, marking a significant step in mainstream finance’s adoption of cryptocurrency.
CNBC reported that the bank’s 15,000 financial advisors can start pitching bitcoin ETFs to clients starting next Wednesday, citing sources familiar with the policy.
The financial giant isn’t exactly throwing open the doors to crypto ETFs, however. The policy only allows advisors to recommend two specific bitcoin ETFs, BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, and only to eligible clients.
In a sense, Morgan Stanley’s relaxed but still guarded stance on bitcoin ETFs was a long time coming, as it arrives more than half a year after the SEC’s January decision to approve 11 spot bitcoin ETFs.
The OG cryptocurrency, as the kids might call bitcoin, has gone through rollercoaster volatility, including multiple market selloffs, euphoric run-ups, and the high-profile collapse of crypto exchange FTX.
It has also faced criticism from the likes of JPMorgan Chase CEO Jamie Dimon and Berkshire Hathaway CEO Warren Buffett. Despite these challenges, bitcoin’s integration into the mainstream financial landscape continues to progress.
Bucking a trend set by its peers – including Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo – Morgan Stanley is now allowing its advisors to proactively offer these ETFs to clients rather than just waiting for clients to request them.
It’s been much slower to green-light bitcoin ETFs compared to the broader wealth space. In February, Carson Group gave its advisors approval to recommend a small shelf of four bitcoin ETFs, while Cetera revealed its own
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