TechFlow reports that on August 2, according to CNBC, Morgan Stanley announced it will allow its approximately 15,000 financial advisors to recommend Bitcoin ETFs to eligible clients—a first among major Wall Street banks. Starting August 7, advisors may recommend BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund to clients. Morgan Stanley stated the move responds to client demand and the ongoing evolution of the digital asset market.
However, Morgan Stanley is taking a cautious approach in its rollout, permitting only clients with at least $1.5 million in net assets, high risk tolerance, and an interest in speculative investments to participate. All transactions must occur within taxable brokerage accounts, not retirement accounts. Additionally, Morgan Stanley will monitor clients' crypto asset holdings to prevent excessive exposure to this volatile asset class.
Currently, Morgan Stanley's approved crypto investments are limited to the two aforementioned Bitcoin ETFs, as well as private funds from Galaxy and FS NYDIG that have been available since 2021. The bank is closely monitoring developments in the newly approved Ethereum ETF market but has not yet decided whether to offer related investment options.
