Morgan Stanley will allow its financial advisors to offer Bitcoin-based ETFs to qualifying clients, a first for a major Wall Street bank. According to a CNBC report, starting August 7, Morgan Stanley’ s 15,000 financial advisors can persuade clients to buy shares of BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Other major Wall Street banks have not followed Morgan Stanley’s lead and offered Bitcoin-based ETFs. Firms such as Goldman Sachs, JPMorgan, Bank of America and Wells Fargo continue to prohibit their advisors from offering these products.
The report found that these banks only allow trading in Bitcoin-based ETFs when clients specifically request it, according to institutional spokespeople. This cautious approach contrasts with the adoption of digital assets by leading financial firms.
Morgan Stanley is taking a cautious approach to its new offerings. According to people familiar with the rules, only clients with a net worth of at least $1.5 million and a high risk tolerance will be eligible to invest. These investments will be limited to taxable brokerage accounts.
Sources said the bank will monitor clients’ cryptocurrency holdings to ensure they do not have excessive exposure to a volatile asset class. This measure is aimed at maintaining a balanced investment portfolio for clients.
Morgan Stanley has not yet committed to offering newly approved Ethereum ETFs. According to sources, the bank is watching the development of the market for these products before making any decisions.
Morgan Stanley ready to recommend bitcoin ETFs
In April, the company was said to be considering allowing brokers to actively recommend Bitcoin ETFs. AdvisorHub indicated that Morgan Stanley is developing new safeguards for on-demand purchases, two senior executives familiar with the firm’s plans said.
These safeguards will include setting risk tolerance criteria, imposing limits on allocation and regulating trading frequency. However, the directors did not specify when these policy changes would be implemented.
