Originally published on: August 02, 2024
Morgan Stanley, known as the largest wealth manager in the United States, is set to make a groundbreaking move by allowing its 15,000 financial advisers to recommend Bitcoin exchange-traded funds (ETFs) to clients. According to a recent report by CNBC, starting August 7th, Morgan Stanley wealth managers will be able to advise eligible clients on purchasing shares of two BTC ETFs – BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
This decision marks a significant milestone for the world of crypto, as major financial advisory firms, including wirehouses like Morgan Stanley, have previously been cautious about embracing spot crypto ETFs. Other big names in the industry such as Bank of America, JPMorgan Chase, and Wells Fargo have also shown hesitancy towards these investments.
Despite the impressive growth in crypto valuations, the industry has struggled to expand beyond its core base of investors. Most of the $60 billion inflow into spot crypto ETFs in 2024 has originated from crypto-native retail investors and hedge funds. Now, with Morgan Stanley onboard, the game is changing.
Morgan Stanley stands out as the largest firm among wirehouses, managing trillions of dollars in assets. The approval of BlackRock’s IBIT and Fidelity’s FBTC by a leading institution like Morgan Stanley signifies a shift towards mainstream adoption of BTC ETFs. These ETFs are not only gaining traction among wirehouses but also independent financial advisers, indicating a broader acceptance of crypto investment opportunities.
Industry experts predict that the continued adoption of BTC ETFs by major advisory platforms could lead to a significant increase in investments from financial advisers. This trend could potentially drive a surge in inflows into the crypto market, creating new opportunities for investors looking to diversify their portfolios.
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