Morgan Stanley could soon allow its 15,000 brokers to recommend Bitcoin (BTC) exchange-traded funds (ETF) to their clients, AdvisorHub reported on April 24.
The financial behemoth had initially greenlit BTC ETF purchases following approval earlier this year. However, these transactions were strictly initiated by customers, necessitating them to proactively engage with their advisors to delve into this asset class.
Now, the institution is contemplating a shift to allow its brokers to actively promote BTC ETFs, potentially amplifying demand for these investment vehicles. However, such a move also comes with added exposure to legal ramifications.
Meanwhile, the Wall Street giant is working on establishing clear guidelines, or “guardrails,” for solicited purchases. These guidelines may include risk tolerance assessments and allocation and trading frequency limits.
An unnamed Morgan Stanley executive reportedly said:
“We’re going to make sure that we’re very careful about it…we are going to make sure everybody has access to it. We just want to do it in a controlled way.”
The executives did not provide a specific timeline for when the bank would finalize its policy review.
Bitcoin ETFs
Market analysts view this development as highly favorable for the emerging crypto industry, especially following the early triumphs of the Bitcoin ETF.
Thomas Fahrer, co-founder of Apollo Sats, highlighted the significance of this shift, contrasting it with Morgan Stanley’s previous reserved stance, stating:
“This is a big change from their “if they ask” approach, which is how they’ve managed ETF allocations thus far.”
According to Farside Investors data, spot bitcoin ETFs have collectively attracted a net inflow of $12.29 billion and manage over $53 billion in assets.
However, recent trends indicate a decline in inflows. CryptoSlate Insight reported that BlackRock’s ETF, for instance, witnessed no daily inflow for the first time since its inception on April 24.
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