Anika Begay
The Bitcoin investment landscape is set for a sea change as Morgan Stanley, a leading global financial services firm, prepares to launch spot BTC exchange-traded funds (ETFs) through its network of 15,000 financial advisors starting tomorrow, August 7. The move, first reported by CNBC on August 2, marks the first time a major Wall Street bank has allowed such widespread direct access to Bitcoin investment products.
Why This Is Huge For Bitcoin
Following the U.S. Securities and Exchange Commission’s approval of 11 spot BTC ETFs earlier this year, Morgan Stanley’s announcement underscores the growing acceptance of Bitcoin in mainstream financial services. Starting Wednesday, Morgan Stanley advisors will be able to offer shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to their clients.
“The Japanese carry trade liquidation will fade into oblivion once Morgan Stanley’s 15,000 financial advisors start adding BTC ETFs to client portfolios. I can tell you that most people don’t understand what that means yet. The U.S. asset management business is a beast,” said Mike Alfred, CEO of Digital Assets Data and Managing Partner at Alpine Fox LP.
The ETFs will be available only to clients who meet specific criteria, including a net worth of at least $1.5 million, a high risk tolerance and an expressed interest in speculative investments. “This targeted approach ensures that the offering is matched to the risk profile and investment objectives of eligible clients,” said a source familiar with the policy.
Haseeb Qureshi, Managing Partner at Dragonfly, highlighted the change in protocol for private wealth advisors, “This is huge. Currently all private wealth advisors are ‘reverse claims only,’ meaning they are not allowed to market the BTC ETF to their clients. That has just changed now.”
Scott Melker, known online as “The Wolf Of All Streets,” commented on the implications of this move: “This move reflects growing customer demand and represents an important step in the mainstream adoption of Bitcoin. Only customers with a net worth of at least $1.5 million, a high risk tolerance, and an interest in speculative investments are eligible, and these investments are limited to taxable brokerage accounts.”
Quinten Francois, a prominent cryptocurrency analyst, highlighted the magnitude of this development: “Morgan Stanley will soon allow financial advisors to offer Bitcoin ETFs. Morgan Stanley advisors manage $5.7 trillion in client assets, the largest of the wirehouses.”
Prominent Bitcoin analyst British HODL (@BritishHodl) added via X: “Morgan Stanley just changed the advisory game and started the Hunger Games for advisors, they are bringing 15,000 hungry, commission-driven salespeople to the Bitcoin army to attack their $1.46 trillion in assets under management.
At press time, BTC was trading at $54,831.
Featured image created with DALL.E, chart from TradingView.com
