Insiders claim that Morgan Stanley brokers may soon offer Bitcoin ETFs to their clients.
Morgan Stanley, a major banking institution, may soon allow its 15,000 brokers to promote Bitcoin exchange-traded funds (ETFs) to their clients. This move, reported by AdvisorHub, signifies a change in the bank’s policy, as they previously only offered these options on an unsolicited basis. Under the new policy, customers will be able to reach out to their advisors at the brokerages to express interest in investing in Bitcoin ETFs. However, the bank will implement risk tolerance requirements and place limits on allocation and trading frequency to ensure a controlled approach.
The decision by Morgan Stanley is reflective of the increasing demand for Bitcoin ETFs among institutional players. While there is interest among their clientele, Bitcoin is still generally perceived as a speculative asset. As a result, investors tend to allocate only a small portion of their funds to Bitcoin.
In recent months, Bitcoin ETFs have brought significant inflows to the cryptocurrency market. However, this trend appears to be slowing down, with BalckRock, an ETF issuer, reporting zero daily inflows for the first time on April 24. Other issuers have also experienced a decline in performance, with only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) seeing inflows of $5.6 million and $4.2 million, respectively. Currently, the Bitcoin ETF market in the U.S. holds approximately $12.3 billion worth of Bitcoin.
In related news, Grayscale’s Bitcoin ETF experienced outflows of $1.6 billion just hours before the halving event.
