Originally published on: August 07, 2024
In a groundbreaking move, Morgan Stanley, the top wealth manager in the US, has officially allowed its 15,000 financial advisors to advocate for Bitcoin ETFs to their clients. This shift, effective August 7th, marks a significant step towards mainstream adoption of cryptocurrencies in the investment world.
According to insider sources, Morgan Stanley has chosen to recommend two leading Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). These products are gaining traction not just among wirehouses like Morgan Stanley, but also among independent financial advisors, signaling a wave of interest in the digital asset.
The decision by Morgan Stanley, with its massive $3.75 trillion managed by its advisory network, is a pivotal moment for the crypto market. This endorsement could potentially open the floodgates for financial advisors to steer their clients towards embracing Bitcoin ETFs, leading to a surge in investments in the digital currency.
Matt Horne, head of digital asset strategists at Fidelity Investments, expressed excitement about the strong demand for spot crypto ETPs among various client segments. He believes that the potential of this asset class stretches far beyond institutional investors to reach retail investors and beyond.
With leading advisory platforms like Morgan Stanley onboard, the stage is set for a significant uptick in inflows from financial advisors into spot BTC ETFs. This move could potentially reshape the landscape of crypto investments, bringing it into the mainstream investment sphere.
Until now, spot crypto ETFs have been largely overlooked by the financial advisory giants, but with Morgan Stanley breaking the ice, we could see a domino effect of other firms following suit. The early adoption of these ETFs by registered investment advisors (RIA) has paved the way for wirehouses to recognize the potential of cryptocurrencies as legitimate investment options.
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