Morgan Stanley has told financial advisors that it will allow them to offer a spot Bitcoin exchange-traded fund (ETF) to some of its clients, CNBC reports.
The move is the first of its kind among major Wall Street banks, according to a report from Morgan Stanley on Aug. 7. Allows financial advisors to recommend eligible clients buy shares of BlackRock’s iShares, two spot bitcoin ETFs. Bitcoin Bitcoin
-4.11%
Morgan Stanley responds to client demand
Morgan Stanley made the decision in response to client demand, the report added, according to the sources, who requested anonymity.
However, the source also said that the bank will only allow customers with a net worth of at least $1.5 million to purchase these products. They must also have a strong risk tolerance and an interest in speculative investments. Also, investments in the two spot Bitcoin ETFs are limited to taxable brokerage accounts and are not available for retirement accounts.
The source also noted that Morgan Stanley will monitor the development of its clients’ cryptocurrency holdings to ensure they are not overly exposed to the asset class. The investment bank will closely monitor the progress of the newly approved spot Ethereum ETF, but has not yet committed to providing access to the product.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.