Morgan Stanley gave thousands of financial advisers the green light to solicit eligible clients to purchase spot-Bitcoin exchange-traded funds as soon as next week, according to a person familiar with the matter.
The company in a memo told its 15,000-strong adviser base they can offer some clients to buy either BlackRock Inc.’s iShares Bitcoin Trust (ticker IBIT) or the Fidelity Wise Origin Bitcoin Fund (FBTC), the person said. Morgan Stanley declined to comment on the approval, which was reported earlier by CNBC.
Only clients who have a net worth of at least $1.5 million, high risk tolerance and the intention to invest in speculative assets can be solicited, the person added.
Morgan Stanley’s decision may pave the way for other banks that have been reticent to offer digital assets to consider tapping into the sector. Ever since the US Securities and Exchange Commission grudgingly approved spot-Bitcoin ETFs in January, the cohort has all but shattered expectations from flows to assets.
Leading the way is BlackRock’s IBIT which has now amassed nearly $22 billion in assets since inception. Fidelity’s FBTC has garnered $11 billion. The group of US Bitcoin ETFs has attracted nearly $18 billion in net inflows since their listing, part of a record-breaking debut for a fund category.
In July, the SEC approved the issuance of ETFs holding Ether, the second-largest cryptocurrency after Bitcoin.
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