Morgan Stanley is set to become the first major Wall Street bank to allow its financial advisors to offer spot bitcoin exchange-traded funds (ETFs) to select clients, according to a CNBC report. Starting August 7, advisors will be able to solicit eligible clients to purchase shares of two spot bitcoin ETFs: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
The decision was driven by increasing client demand, sources familiar with the bank’s internal policy decisions told CNBC. However, Morgan Stanley will restrict access to these bitcoin ETFs to clients with a net worth of at least $1.5 million, a high risk tolerance, and an interest in speculative investments. These investments will be limited to taxable brokerage accounts, excluding retirement accounts.
Morgan Stanley plans to closely monitor client crypto holdings to prevent excessive exposure to the asset class. While the bank is observing the development of newly approved spot Ethereum ETFs, it has not yet committed to offering those products.
