Morgan Stanley Becomes First Wall Street Giant to Allow Advisors to Recommend Bitcoin ETFs – Fidelity Wise Origin Bitcoin Fund Common Shares of Beneal Interest (BATS:FBTC)

Morgan Stanley recently became the first major Wall Street bank to allow its financial advisers to offer Bitcoin BTC/USD ETFs to customers, marking a significant step in mainstream cryptocurrency adoption.

Since early August, the bank’s 15,000 advisers can recommend two specific bitcoin ETFs: BlackRock’s iShares Bitcoin Trust IBIT and Fidelity’s Wise Origin Bitcoin Fund FBTCpaving the way for wider crypto acceptance in the financial advisor industry.

For now, Morgan Stanley is taking a cautious approach:

1. Only eligible clients with a net worth of at least $1.5 million, high risk tolerance and interest in speculative investing will be considered suitable.
2. Investments are intended for taxable brokerage accounts, not retirement accounts.
3. The bank will monitor customers’ cryptocurrency holdings to prevent overexposure.

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The move comes more than six months after the SEC approved 11 spot Bitcoin ETFs in January. Despite bitcoin’s volatility and criticism from prominent figures such as Jamie Dimon and Warren Buffettits integration into mainstream funding continues to progress.

Morgan Stanley’s decision contrasts with peers such as Goldman Sachs, JPMorgan, Bank of America and Wells Fargo, which do not proactively offer these ETFs for now. Morgan Stanley’s change responds to growing client demand and an evolving digital asset market.

This is not Morgan Stanley’s first venture into crypto investing. In 2021, it approved the purchase of private funds from Galaxy and FS NYDIG. The bank is also monitoring recently approved ether ETFs, but has not yet decided to offer access to these products through advisers.

Morgan Stanley’s cautious acceptance of Bitcoin ETFs reflects the ongoing tension between traditional finance and the emerging cryptocurrency market. As customer interest grows and regulatory clarity improves, other major financial institutions may follow suit, potentially accelerating the integration of cryptocurrency into mainstream investment portfolios. Financial advisors should take note.

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