Morgan Stanley Approves Wealth Advisors to Offer Bitcoin ETFs, a First for Major Banks

 **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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## Iran Reports Hamas Leader Assassinated at Close Range.

 

Ismail Haniyeh attended the inauguration of Iran's new president in Tehran.

Hamas political chief Ismail Haniyeh was killed by a "short-range projectile" fired from outside his guesthouse in Tehran, according to Iran's Revolutionary Guard Corps (IRGC). The paramilitary organization reported that the 7kg (16lbs) projectile caused a "strong blast," killing Haniyeh and his bodyguard last Wednesday. Haniyeh had been in the Iranian capital for the inauguration of President Massoud Pezeshkian. The IRGC accused Israel, with support from the US, of orchestrating the attack. Israel has not commented on Haniyeh's death. This account contrasts with Western media reports suggesting that Israeli operatives planted explosives in the guesthouse.

The failures surrounding Haniyeh's death, especially on a day marked by intense security, have caused embarrassment for Iran and the IRGC. Dozens of IRGC officers have been arrested or dismissed in the days since Haniyeh's death, the New York Times reported on Saturday. The paper noted that the organisation's intelligence agency had taken over the investigation, with staff members at Haniyeh's guesthouse being interrogated and their phones and other electronics seized.

Meanwhile, the security details of Iranian politicians have been overhauled. Supreme Leader Ayatollah Ali Khamenei led prayers for Haniyeh on Thursday but was quickly whisked away by his security detail after the ceremony. The IRGC's statement on Saturday followed a report by Britain's Daily Telegraph, which said Haniyeh was killed by bombs planted in his room by agents of Israel's Mossad intelligence agency.

Citing Iranian officials, the paper reported that two Mossad agents had entered the guesthouse and planted explosives in three rooms. The Iranians, after viewing CCTV footage of the operatives, stated that the two agents left the country before detonating the bombs from outside Iran. The New York Times also reported that Haniyeh was killed by explosives detonated in his room, suggesting they could have been planted up to two months earlier. The BBC has not been able to verify these claims.

However, Hamas officials told the BBC earlier this week that Haniyeh had stayed at the same guesthouse before, having made up to 15 visits to Iran since becoming the head of the political bureau in 2017. If the reports are accurate, this would signify a significant failure for the IRGC, who have long controlled internal security in the country. Experts also noted that it would underscore the extent to which Mossad can operate with impunity in Iran.

Regardless of the manner of Haniyeh's death, both Iran and Hamas have vowed to retaliate.

The IRGC stated on Saturday that Israel would face "severe punishment at the appropriate time, place, and manner." Hezbollah, the Iranian-backed militia and political group in Lebanon, has also vowed reprisals following the death of one of their top commanders, Fuad Shukr, in an Israeli strike last Tuesday. Earlier this year, after an Israeli operation killed IRGC Brig. Gen. Mohammad Reza Zahedi in Damascus, Iran responded by launching 170 drones, 30 cruise missiles, and at least 110 ballistic missiles towards Israel.

Prime Minister Benjamin Netanyahu has warned Israelis that "challenging days lie ahead... We have heard threats from all sides. We are prepared for any scenario." This weekend, his ministers were sent home with satellite phones in case of an attack on the country's communication infrastructure. 

Despite these warnings, the mood appeared relaxed on Tel Aviv's seafront, where bronzed bodies lazed under beach umbrellas. However, few doubt that the Middle East stands perilously close to full-scale war. Israel is on high alert, and several international airlines have suspended flights to the country. 

The US has also deployed additional warships and fighter jets to the Middle East to help defend Israel from possible attacks by Iran and its proxies, according to the Pentagon. UK Foreign Secretary David Lammy has warned that the risk of rapid deterioration on the ground is rising. 

Meanwhile, at least 10 people have been killed in an Israeli airstrike on a school sheltering displaced people in Gaza's Sheikh Radwan neighborhood, the Hamas-run government media office has reported.

Israel has announced that an airstrike in the occupied West Bank killed a Hamas commander and four senior Palestinian Islamic Jihad fighters on Saturday. The Israeli military reported that the airstrike targeted a vehicle as the men were en route to carry out an attack.

In other developments, Israeli officials, including the directors of Mossad and the internal security agency Shin Bet, have arrived in Cairo for new ceasefire talks. They are scheduled to meet with Egyptian intelligence chief Abbas Kamel and other senior military officials in an attempt to negotiate a truce. However, U.S. President Joe Biden acknowledged on Friday that the death of Haniyeh, who was significantly involved in the negotiations, had negatively impacted the talks. President Biden stated that Haniyeh's death "doesn't help" efforts to resolve the ten-month conflict.

The conflict began in October when Hamas launched an unprecedented attack on Israel, resulting in the deaths of approximately 1,200 people and the capture of 251 individuals who were taken to Gaza as hostages. This attack prompted a substantial Israeli military response, which, according to Gaza's Hamas-run health ministry, has resulted in the deaths of at least 39,550 Palestinians.

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