According to a CNBC report, Morgan Stanley, the leading wealth manager in the U.S., is set to permit its 15,000 financial advisers to begin recommending Bitcoin exchange-traded funds (ETFs) to their clients.
Morgan Stanley wealth managers will be able to recommend shares of two Bitcoin ETFs—BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC)—to eligible clients at the time of August 7, 2024.
However, other spot cryptocurrency ETFs, including the newly introduced Ether ETFs, have not yet received approval.
Morgan Stanley’s Supportive Stance
Securing Morgan Stanley’s support represents a significant achievement for the cryptocurrency industry. Historically, the largest financial advisory firms, known as wirehouses, have been cautious about adopting spot crypto ETFs.
In addition to Morgan Stanley, this group includes major institutions such as Bank of America, JPMorgan Chase, and Wells Fargo.
Despite the rapid increase in valuations, cryptocurrencies have had difficulty expanding their reach beyond their core audience.
In 2024, approximately $60 billion has flowed into spot crypto ETFs, primarily from retail investors familiar with the crypto space and hedge funds.
Kyle DaCruz’s Optimism
Wirehouses, which manage trillions of dollars, set high standards for adopting new financial products. Winning over this market segment for crypto ETFs is “a game changer,” according to Kyle DaCruz, director of digital assets products at VanEck, a sponsor of crypto ETFs.
Morgan Stanley stands out as the largest among wirehouses, with its advisory network overseeing approximately $3.75 trillion, including $1 trillion in self-directed client accounts.
Altogether, Morgan Stanley manages $6.2 trillion across all its banking units, according to financialplanning.com.
Institutional Interest Is At Its’ Peak
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) are becoming leading options among Bitcoin ETFs.
These ETFs are gaining traction not only with wirehouses like Morgan Stanley but also with independent financial advisers, according to Roxanna Islam, head of sector and industry research at VettaFi.
The increasing adoption by major advisory platforms could lead to a significant rise in inflows into spot Bitcoin ETFs, noted Matthew Sigel, VanEck’s head of digital assets research.
Resolution
As one of the largest and most influential wirehouses, Morgan Stanley’s endorsement not only validates the viability of digital assets but also paves the way for wider acceptance among other major financial institutions.
This move signifies a crucial milestone in the integration of cryptocurrencies into mainstream investment portfolios, potentially unlocking new opportunities for investors and driving substantial growth in the crypto market. As institutional interest peaks and advisory platforms increasingly embrace these innovative financial products, the future of cryptocurrency investment looks promising, heralding a new era of financial inclusivity and diversification.
Author : Mr.oxBull
Article Published : August 04, 2024.
