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Morgan Stanley to Offer Bitcoin ETFs to Wealthy Customers From August 7: Report

The company will offer BlackRock’s IBIT and Fidelity’s FBTC to clients with $1.5 million in net worth.

Avatar image of Mishael Nwani Mishael Nwani•August 2, 2024
temporary Halt

Investment banking firm Morgan Stanley has notified its cohort of financial advisers that it would commence offering the spot Bitcoin exchange-traded fund (ETF) to wealthy clients, starting August 7th, people familiar with the matter confirmed to CNBC on Friday. Notably, this will be the first time a Wall Street bank will embrace the Bitcoin ETF product.

Morgan Stanley to Adopt Bitcoin ETF

According to the report, over 15,000 financial advisers under Morgan Stanley will offer eligible clients the choice between BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). Notably, these two Bitcoin ETFs hold the first and second leading positions in terms of net inflows among a slew of similar products offered in the United States.

Only clients with a minimum portfolio of $1.5 million in taxable brokerage accounts are qualified to purchase these Bitcoin ETF products. Users with retirement accounts are not eligible to acquire these investment vehicles. The investment company will also ensure that these investors do not overly expose their portfolios to both Bitcoin ETFs.

Many in the financial markets regard Morgan Stanley’s latest move as a big move. With assets under management (AUM) worth $1.5 trillion, the multinational investment bank sets the pace for other Wall Street banks to adopt the leading cryptocurrency, offering spot Bitcoin ETFs to mainstream audiences.

Impact on BTC’s Price

American businessman and payments executive Gary Cardone predicted that Morgan Stanley’s move would take BTC’s market capitalization to $3 trillion in 18 months, a move that could skyrocket the digital asset’s value.

Still, BTC’s current market cap is $1 trillion. Its trading price is $63,300, representing a 6.3% drop in the past week.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.