Bitcoin ETFs: Morgan Stanley Making Important Adoption Step


According to a report from AdvisorHub, Morgan Stanley, a leading global investment bank and wealth management firm, is laying the foundation that will empower its 15,000 brokers to suggest spot Bitcoin exchange traded Funds (ETFs) to customers. 

The firm is working on setting requirements for risk tolerance, allocation limits, and trading frequency. The source of information came from two senior executives familiar with the company’s plan. However, the informants couldn’t provide a specific timeframe for when this policy change might happen.

In 2020 the financial giant reported that investors are falling behind when it comes to purchasing Bitcoin and other cryptocurrencies. It will be fascinating news for stakeholders if this development comes to reality.

Advantage to the Crypto Community and World at large 

It will be an exciting time to see Morgan Stanley join the ranks of brokerage companies like Merrill Lynch and Wells Fargo to start providing spot Bitcoin ETFs. 

If the organization allows its brokers to recommend spot Bitcoin exchange-traded funds, the development could be seen as a positive step towards mainstream acceptance of cryptocurrencies among a wider audience. This move could also contribute to the legitimization of cryptocurrencies as an investment option. Additionally, it may attract more institutional investors and further drive the growth and adoption of digital assets. 

Amid the broader push for Bitcoin ETF embrace, Merrill Lynch and Wells Fargo initially restricted purchases to a solicited basis, meaning customers had to proactively contact their advisors to make the purchase after launching in January. 

Data from SoSoValue on Wednesday, showed spot Bitcoin ETFs traded in the U.S. by major financial institutions like BlackRock, Grayscale, and Ark Invest have attracted a total net inflow of $12.29 billion and have accumulated over $53.6 billion in assets under management. 

In the case of BlackRock, its IBIT spot bitcoin fund alone represents 24% of all the flows from its 1,000 ETFs. It’s impressive to see the significant interest and investment in these Bitcoin ETFs.

Morgan Stanley’s Path of Progress Continues

In 2020, Morgan Stanley made a big move by acquiring E*Trade for a whopping $13 billion in an all-stock deal. It was a significant step for the firm, expanding its presence in the financial services industry. 

The move to pivot into Spot Bitcoin ETFs could lead to even more exciting progress and opportunities for investors if the company combines its expertise in E*Trade offerings with ETFs. 

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