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Morgan Stanley Authorizes Wealth Advisors to Offer Bitcoin ETFs, Pioneering Move for Major Banks

Morgan Stanley has announced that it will soon allow its financial advisors to offer bitcoin exchange-traded funds (ETFs) to certain clients, marking a significant step for a major Wall Street bank. Starting Wednesday, the firm’s approximately 15,000 financial advisors will be able to recommend two bitcoin ETFs—BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund—to eligible clients, according to sources familiar with the policy. 

This decision by Morgan Stanley, one of the world’s largest wealth management firms, reflects the growing acceptance of bitcoin within mainstream finance. In January, the U.S. Securities and Exchange Commission approved 11 spot bitcoin ETFs, offering investors a more accessible, cost-effective, and tradable option for bitcoin investments. 

Despite bitcoin’s resilience amid market volatility, the collapse of crypto exchange FTX, and skepticism from prominent financial figures like JPMorgan Chase CEO Jamie Dimon and Berkshire Hathaway CEO Warren Buffett, major Wall Street wealth management firms have been cautious in embracing these ETFs. Unlike Morgan Stanley, firms such as Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo still restrict their advisors from promoting these products. 

Morgan Stanley‘s move is driven by client demand and the evolving digital assets market, according to insiders. However, the bank is proceeding cautiously, permitting bitcoin ETF recommendations only for clients with a net worth of at least $1.5 million, a high-risk tolerance, and an interest in speculative investments. These offerings are limited to taxable brokerage accounts, excluding retirement accounts. 

The bank will closely monitor clients’ cryptocurrency holdings to avoid excessive exposure to this volatile asset class. Currently, only the two bitcoin ETFs from BlackRock and Fidelity are approved for solicitation at Morgan Stanley, as the bank phased out private crypto funds from Galaxy and FS NYDIG earlier this year. The firm is also evaluating the market for newly approved ether ETFs but has not yet committed to offering them.

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