Morgan Stanley, one of the world’s largest investment banks with over $1.4 trillion in assets under management (AUM), has decided to allow brokers to directly recommend Bitcoin exchange-traded funds (ETFs) to their clients. It is said to be under consideration.
JUST IN: Morgan Stanley can accept referrals from 15,000 brokers. #Bitcoin ETFs to Clients: Reports
Gradually and then suddenly š pic.twitter.com/eORWmQnSPA
ā Bitcoin Magazine (@BitcoinMagazine) April 25, 2024
This move follows the successful launch of a Bitcoin spot ETF in the US earlier this year, which saw significant demand from investors.
Morgan Stanley has reacted positively to Bitcoin following its approval, with the bank opening up Bitcoin ETF purchases to its clients shortly after its launch. But until now, these purchases have only been possible on an unsolicited basis, preventing intermediaries from actively promoting their products to customers.
The potential change in policy could allow Morgan Stanley brokers to actively recommend Bitcoin ETFs to their clients.
As reported by AdvisorHub, a Morgan Stanley executive said: “We’re going to be very careful about this. We’re going to make sure everyone has access to this. We just want to do it as quickly as possible and in a controlled way.”
The approval of the Bitcoin Spot ETF in the United States provided a regulated and accessible way for institutional and retail investors to gain exposure to Bitcoin.
The success of these ETFs has demonstrated high demand for Bitcoin investment products and paved the way for increased mainstream adoption.
If Morgan Stanley allows brokers to actively recommend Bitcoin ETFs, it could attract significant capital into the product.
Building on the bank’s broad customer base and investors’ trust in its recommendations, this move could further strengthen the growth and legitimacy of Bitcoin as an investment asset.
Moreover, Morgan Stanley’s possible acceptance of a Bitcoin ETF could send a positive signal to other traditional investors and highlights the growing acceptance and demand for Bitcoin in the financial world.