Morgan Stanley is set to make a significant move in the cryptocurrency space by allowing its 15,000 financial advisors to recommend bitcoin exchange-traded funds (ETFs) starting August 7, 2024.
This decision marks a notable shift in the firm’s approach to digital assets and reflects growing client demand for cryptocurrency investments.
The two ETFs available for recommendation are BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
However, Morgan Stanley will limit these offerings to clients with a net worth of at least $1.5 million, ensuring that only those with a high risk tolerance and interest in speculative investments can participate.
Investments will be restricted to taxable brokerage accounts, excluding retirement portfolios.
This cautious approach comes in the wake of past market volatility and the collapse of major cryptocurrency exchanges, which has made many financial institutions hesitant to embrace bitcoin fully.
Nevertheless, Morgan Stanley’s decision signals a broader acceptance of bitcoin within mainstream finance, as it joins other firms in exploring the potential of cryptocurrency investments amid evolving market conditions.