As the popularity of spot bitcoin ETFs continues to rise following their launch in January, speculation mounts regarding their integration into major registered investment advisor (RIA) networks and broker-dealer platforms.
Insiders with knowledge of the matter have revealed that Wall Street giant Morgan Stanley is currently engaged in due diligence to potentially offer spot bitcoin ETF products on its brokerage platform. One individual disclosed that Morgan Stanley, counted among the largest U.S. broker-dealer platforms, has been actively evaluating the possibility of providing spot bitcoin ETFs to its clients since these products gained approval from the Securities and Exchange Commission earlier this year.
While billions of dollars have already flowed into spot bitcoin ETFs, significant adoption may await their availability on prominent RIA networks and broker-dealer platforms affiliated with firms like Merrill Lynch, Wells Fargo, and others.
Presently, there are 10 spot bitcoin ETFs trading in the U.S., including prominent options such as Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. However, it remains undisclosed which specific ETFs Morgan Stanley is considering for inclusion on its platform.
When approached for comment, Morgan Stanley declined to provide any official statement on the matter.
Morgan Stanley, renowned for its leadership in alternative investments and private markets, boasts a substantial $150 billion in assets under management. The financial institution made waves in 2021 by becoming the first major U.S. bank to grant its affluent clients access to bitcoin funds. During its first-quarter earnings call in April 2021, the bank confirmed its provision of exposure to bitcoin for wealth management clients through external crypto funds.
Former CFO Jonathan Pruzan outlined the bank’s strategy at the time, revealing that qualified investors were granted access to two passive funds, reportedly offered by Galaxy Digital and NYDIG.