Key Points
- Morgan Stanley is considering allowing its brokers to suggest Bitcoin ETFs to clients.
- Bitcoin ETFs have seen significant inflows and assets under management from major financial institutions.
Morgan Stanley, a leading financial services firm, is reportedly considering a policy change. This change would enable its 15,000 brokers to recommend Bitcoin ETFs to their clients. This information comes from two high-ranking executives familiar with the company’s future plans.
Groundwork for Policy Change
The firm is laying the groundwork for this change, which includes setting risk tolerance requirements, limits on allocation, and trading frequency. Despite this, the executives could not provide a specific timeline for the policy change.
Large brokerage firms like Morgan Stanley, Merrill Lynch, and Wells Fargo started offering Bitcoin ETFs after their launch in January. However, purchases were limited to an unsolicited basis. This meant customers had to initiate contact with their advisors to buy these ETFs.
Popularity of Bitcoin ETFs
Spot Bitcoin ETFs, offered by major financial institutions such as BlackRock, Grayscale, and Ark Invest, have seen significant growth. They have collectively received a net inflow of $12.29 billion and have over $53.6 billion in assets under management. For instance, BlackRock’s IBIT spot Bitcoin fund accounts for 24% of all their flows from 1,000 ETFs.