**Key Points**
- **Morgan Stanley's New Offering:** Morgan Stanley announced it will allow its financial advisors to offer bitcoin ETFs to select clients, marking a first among major Wall Street banks.
- **Advisor Participation:** Starting August 7, Morgan Stanley's approximately 15,000 financial advisors can begin soliciting eligible clients to invest in bitcoin ETFs.
- **Available Funds:** The two bitcoin ETFs available are BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Morgan Stanley announced on Friday that it will soon allow its financial advisors to offer bitcoin ETFs to select clients, a first among major Wall Street banks, according to CNBC.
Starting Wednesday, the firm's approximately 15,000 financial advisors can recommend shares of two bitcoin exchange-traded funds to eligible clients. These funds are BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund, as per sources familiar with the policy.
This move by Morgan Stanley, one of the largest wealth management firms globally, marks a significant step in the mainstream adoption of bitcoin. In January, the U.S. Securities and Exchange Commission approved applications for 11 spot bitcoin ETFs, introducing an investment vehicle for bitcoin that is easier to access, cheaper to own, and more readily traded.
Bitcoin has weathered market sell-offs, the spectacular collapse of the crypto exchange FTX, and criticism from prominent financial figures like JPMorgan Chase CEO Jamie Dimon and Berkshire Hathaway CEO Warren Buffett.
Given this context, it’s not surprising that Wall Street's major wealth management businesses were initially hesitant to embrace the new ETFs. They prohibited their financial advisors from pitching these products and only permitted trades if clients specifically requested them.
According to spokespeople at Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo, this cautious approach is still in place at these institutions.
Morgan Stanley has made this move in response to client demand and to align with the evolving digital assets marketplace, according to sources familiar with the bank's internal policies who requested anonymity.
Despite this shift, the bank is maintaining a cautious approach: Only clients with a net worth of at least $1.5 million, a high risk tolerance, and an interest in speculative investments are eligible for bitcoin ETF solicitations. These investments are limited to taxable brokerage accounts, not retirement accounts, the sources noted.
Morgan Stanley will also monitor clients' crypto holdings to ensure they don't have excessive exposure to this volatile asset class.
Currently, the only approved crypto investments for solicitation at Morgan Stanley are bitcoin ETFs from BlackRock and Fidelity. The bank phased out private funds from Galaxy and FS NYDIG, which had been available since 2021, earlier this year.
Morgan Stanley is monitoring the market for newly approved Ether ETFs and has not yet decided whether it will offer access to them, according to sources.
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