- Morgan Stanley is considering allowing advisors to recommend Bitcoin ETFs to clients per an AdvisorHub report.
- Bank of America’s Merrill Lynch and Wells Fargo currently offer Bitcoin ETFs on an unsolicited basis.
- Bitcoin could mimic the capital inflow and price gains in Gold post ETF launch.
Morgan Stanley is considering allowing its brokers to actively recommend Bitcoin Exchange-Traded Funds (ETFs), according to an AdvisorHub report. While big banks have been cautious of cryptocurrencies in general, Bank of America’s Merrill Lynch and Wells Fargo are dipping their toes, offering Bitcoin ETFs to ultra-wealthy clientele.
Morgan Stanley and other big banks shift approach to cryptocurrency ETFs
Big US banks like Morgan Stanley and its peers have been slow to open up to Bitcoin ETFs, adopting a cautious approach towards the investment product. In some cases, big banks have offered Bitcoin ETFs only on an unsolicited basis, exclusively to ultra-wealthy clients.
In the case of Merrill Lynch, customers with at least $10 million in assets can purchase Bitcoin ETF.
A new AdvisorHub report surfaced, stating that Morgan Stanley bank is exploring allowing its brokers to actively recommend Bitcoin ETFs. This could usher a rise in capital inflow to the investment product. Rising capital inflow typically influences price positively, as it feeds into demand for the asset.
Previously, Morgan Stanley only permitted unsolicited Bitcoin ETF purchases. The move by the big bank can be interpreted as an adjustment to capitalize on the demand for Spot Bitcoin ETFs for clients looking to hold BTC without direct exposure.
Morgan Stanley did not immediately respond to FXStreet’s request for comments.
Bitcoin ETF approval and surging capital inflow could mimic Gold
Spot Bitcoin ETF issuers have rapidly accumulated BTC. The largest Spot BTC ETF, BlackRock’s iShares Bitcoin Trust (IBIT), holds $17.62 billion in the asset. The surge in the ETF's Bitcoin holdings mimics the introduction of SPDR Gold Shares (GLD) in 2004.
The introduction of GLD pushed the Gold price 254% higher within seven years of its launch. Spot Bitcoin ETFs have mirrored the impact in a shorter period of time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.