Morgan Stanley Explores Expansion of Bitcoin ETF Sales through Advisors: Report
Morgan Stanley Explores Expansion of Bitcoin ETF Sales
Morgan Stanley, a prominent financial institution, is reportedly considering expanding its sales of Bitcoin exchange-traded funds (ETFs) by allowing its 15,000 brokers to actively recommend these products to customers. This move comes as the firm seeks to capitalize on the increasing demand for cryptocurrency investments, as reported by AdvisorHub.
Currently, Morgan Stanley offers Bitcoin ETFs on an unsolicited basis, requiring customers to approach their advisors independently to express interest in investing. By enabling advisors to actively recommend these products, the firm could potentially broaden its customer base, although it would also expose itself to additional liability.
To establish safeguards for solicited purchases, Morgan Stanley is in the process of setting certain requirements related to risk tolerance, limits on allocation, and trading frequency. The firm has not provided a specific timeline for implementing these policy changes.
This approach aligns with other major banks in the industry, such as Merrill Lynch and Wells Fargo, which introduced Bitcoin ETFs shortly after regulatory approval in January. However, some institutions, like Raymond James Financial and Vanguard, have chosen not to offer cryptocurrency products due to concerns about their suitability for long-term portfolios.
In January, the Securities and Exchange Commission (SEC) approved 11 applications for Bitcoin ETFs from firms like BlackRock, Ark Investments, Fidelity, Invesco, and VanEck. While some have made their ETFs available to investors, others are still evaluating their options.
Despite the growing interest in Bitcoin ETFs, it is still considered a speculative investment by many. A Morgan Stanley executive noted that most clients are not heavily investing in Bitcoin but rather putting in a small amount out of curiosity.
In other news, Hong Kong is set to launch spot Bitcoin and Ethereum ETFs by the end of April, as approved by the Hong Kong Securities and Futures Commission (SFC). This move aims to establish Hong Kong as a hub for digital assets by introducing a range of cryptocurrency ETFs.
