Morgan Stanley Clients Can Now Access Bitcoin ETFs for Investment

Key Points:

• Starting August 7, advisors can offer BlackRock’s and Fidelity’s Bitcoin ETFs to Morgan Stanley clients.
• Bitcoin ETFs will be available only in taxable brokerage accounts.
• The bank will monitor clients’ Bitcoin exposure and is evaluating Ether ETFs.

Morgan Stanley plans to allow its financial advisors to recommend spot Bitcoin exchange-traded funds (ETFs) to some clients in what many consider to be the biggest vote of confidence for the asset by a major Wall Street institution.

Read more: Morgan Stanley CEO Says Bitcoin is the “South Park Kenny” of money

Morgan Stanley Clients Get Access to Bitcoin ETFs

Starting on August 7, Morgan Stanley’s 15,000-plus financial advisors will be able to pitch some of the available funds’ shares’ exposure to their clientele, according to CNBC.

The move was a marked departure, with Morgan Stanley becoming the first of the major Wall Street banks to offer such products directly through its advisory services. The news came right after the U.S. Securities and Exchange Commission greenlit spot Bitcoin ETFs, aimed to level access to Bitcoin investments.

But the offering will only be available to Morgan Stanley clients with at least $1.5 million in net worth, who have a high risk tolerance, and who are interested in speculative investments. In addition, such investments will come only in taxable brokerage accounts and not retirement accounts.

Bank Takes Cautious Approach with Bitcoin and Ether ETFs

The bank is reacting to increased interest from its clients in having more exposure to digital assets. At the same time, it would be entering this space very conservatively to ensure only moderate exposure of Morgan Stanley clients to Bitcoin. It would also keep tabs on the development of client crypto holdings in order not to incur excessive risk.

The two Bitcoin ETFs and private funds by Galaxy and FS NYDIG are the only ones registered at the bank since 2021. Morgan Stanley says it remains highly vigilant across the marketplace for newly approved and available Ether ETFs. In other words, it continues to review the space for such ETFs, but no decision has been made regarding whether and how they will be offered.