Morgan Stanley's wealth managers will soon recommend Bitcoin ETFs from BlackRock and Fidelity to clients, marking a historic milestone for crypto adoption.
Morgan Stanley, the largest wealth manager in the United States, is set to allow its 15,000 financial advisers to start recommending Bitcoin exchange-traded funds (ETFs) to eligible clients. This move represents a significant milestone in the mainstream acceptance of cryptocurrency investments.
Key Points:
Starting August 7, Morgan Stanley wealth managers can advise clients on two Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
The approval currently excludes other spot crypto ETFs, including recently launched Ether ETFs.
This development is a historic milestone for crypto, given that major financial advisory firms, known as wirehouses, have been hesitant to embrace spot crypto ETFs.
Wirehouses such as Bank of America, JPMorgan Chase, and Wells Fargo, along with Morgan Stanley, manage trillions of dollars in assets.
Despite high valuations, crypto investments have struggled to extend beyond their core base. Of the $60 billion in spot crypto ETFs in 2024, the majority has come from retail investors and hedge funds.
Winning over wirehouses is a significant achievement, as these firms set a high standard for new financial products.
BlackRock’s IBIT and Fidelity’s FBTC are emerging as leading options among Bitcoin ETFs, seeing increased adoption by wirehouses and independent financial advisers.
Morgan Stanley's decision to recommend Bitcoin ETFs from BlackRock and Fidelity marks a pivotal moment for cryptocurrency adoption. As the largest wealth manager in the U.S., Morgan Stanley's embrace of crypto ETFs could pave the way for broader acceptance and significant inflows from the financial advisory sector.
Source: Cointelegraph
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