The Bitcoin investment landscape is set to undergo a major shake-up 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 broad direct access to Bitcoin investment products.
Why is this so critical 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 their clients shares in BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
“The Japanese carry trade will turn around and fade into the background as 15,000 Morgan Stanley financial advisors start placing BTC ETFs in client portfolios. I can see that most people don’t understand what that means yet. The US wealth management business is a beast.” he 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 certain criteria, including a net worth of at least $1.5 million, a high risk tolerance and an expressed interest in speculative investing. “This targeted approach ensures that the offering is tailored to the risk profile and investment objectives of the appropriate clients,” a source familiar with the policy said.
Haseeb Qureshi, Managing Partner at Dragonfly, illuminated private wealth advisor protocol change, “This is huge. Currently, all private wealth advisors are ‘reverse enquiry only’, meaning they cannot sell BTC ETFs to their clients. That has only changed now.”
Scott Melker, known online as “The Wolf of All Streets”, he commented on the implications of the move: “This move reflects growing customer demand and marks 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, underlined the scale 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 among brokerage firms.”
Popular Bitcoin Analyst British HODL (@BritishHodl) added via X: “Morgan Stanley just changed the rules of the advisor game and started the advisor hunger games. They are bringing in 15,000 hungry, commission-driven salespeople into the Bitcoin army to attack their $1.46 trillion in assets under management.
At the time of going to press, the BTC price was $54,831.
Featured image created with DALL.E, chart from TradingView.com
