The Bitcoin space is on the verge of a monumental shift, with insider reports emerging that Morgan Stanley, a titan in the financial sector, is poised to approve Bitcoin ETFs on its platform within the next two weeks. This groundbreaking news was first brought to light by renowned crypto commentator Andrew from Arch Public (@AP_Abacus) via X (formerly Twitter).
According to Andrew, “UPDATE: several sources confirming that Morgan Stanley is set to approve Bitcoin ETF’s on their platform in the next two weeks. Sources are from inside MS, inside BTC ETF firms, and legal insiders adjacent to both. Morgan Stanley holds more than $1.5T in client assets.” This statement has stirred considerable interest and speculation across the financial and BTC communities.
UPDATE: several sources confirming that @MorganStanley is set to approve #Bitcoin ETF’s on their platform in the next two weeks.
– sources are from inside $MS, inside $BTC ETF firms, and legal insiders adjacent to both.
– @MorganStanley holds more than $1.5T in client assets.— Andrew (@AP_Abacus) March 26, 2024
Eric Balchunas, a Bloomberg ETF expert, in response to Andrew’s tweet, showcased a blend of optimism and skepticism by stating, “Feels right, not doubting you, but what’s the source?” Andrew, maintaining the confidentiality of his informants, replied succinctly with “DM,” indicating a private message discussion for further details.
Will Morgan Stanley Offer Bitcoin ETFs To Its Clients?
This revelation is not entirely unexpected, as rumors about Morgan Stanley’s interest in BTC ETFs have been circulating since late February. Reports suggest that the financial behemoth has been engaged in due diligence processes to incorporate spot Bitcoin ETF products into its brokerage offerings. This information came from individuals familiar with the matter.
Morgan Stanley, a vanguard in alternative investments and private markets, boasting over $150 billion in assets under management, made headlines in 2021 as the first major US bank to provide its affluent clientele with access to BTC funds. During its first-quarter earnings call in April 2021, the wealth management giant confirmed its move to expose its wealth management clients to Bitcoin through two external crypto funds. These funds, understood to have been offered by Galaxy Digital and NYDIG, marked the bank’s initial foray into Bitcoin.
The introduction of spot BTC ETFs in the United States, approved by the Securities and Exchange Commission (SEC) in January, represented a watershed moment for the industry. Despite billions of dollars already being channelled into these products, their full potential is anticipated to be unleashed once they become available through major Registered Investment Advisor (RIA) networks and broker-dealer platforms, including those affiliated with prominent firms like Merrill Lynch, Morgan Stanley, and Wells Fargo.
Since yesterday, the US market hosts 10 spot bitcoin ETFs, with BlackRock’s IBIT and Fidelity’s FBTC leading in assets. The exact ETFs Morgan Stanley intends to offer remain unspecified, though the firm’s history suggests a strategic selection process favoring both innovation and client interest.
Morgan Stanley’s forthcoming decision to approve Bitcoin ETFs underscores the increasing integration of spot Bitcoin ETFs within traditional financial services. This move, if confirmed, could significantly influence the market, further fueling inflows into these ETFs.
At press time, BTC traded at $70,594.
Featured image from Fortune, chart from TradingView.com