Morgan Stanley advisors are now permitted to actively market two spot bitcoin exchange-traded funds (ETFs) to select clients, CNBC reported Friday. This new capability allows advisors to recommend BlackRock’s IShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to clients with a net worth of at least $1.5 million and a high risk tolerance.
The decision marks a significant shift for Morgan Stanley, which previously offered spot bitcoin ETFs only on an unsolicited basis. The move reflects a growing acceptance of digital assets within traditional finance. While other brokerages, such as Fidelity and Charles Schwab, have been more proactive in offering these products, Morgan Stanley’s change could enhance their accessibility and adoption among high-net-worth investors.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted the importance of this development, noting that Morgan Stanley’s advisors manage nearly $5.7 trillion in client assets, the largest among U.S. wirehouse brokers. This shift could increase the likelihood of bitcoin ETFs’ adoption and influence other financial institutions to follow suit.
Since their launch earlier this year, spot bitcoin ETFs have attracted over $17.7 billion in net inflows, despite significant outflows from other products like Grayscale’s Bitcoin Trust (GBTC). The iShares and Fidelity ETFs have been particularly successful, with $20 billion and nearly $10 billion in investor funds, respectively.
While the focus has been on bitcoin ETFs, other digital asset products are also emerging. Recently, spot ether ETFs became available at brokerages like Fidelity and Schwab. It remains to be seen whether Morgan Stanley will expand its offerings to include these ether ETFs for its clients.
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