Morgan Stanley’s Bitcoin ETFs are ‘last taboo’ to adoption

Morgan Stanley, the largest asset management firm in the US, has authorized its 15,000 financial advisors to recommend Bitcoin exchange-traded funds to select clients.

As of Aug. 7, advisors will be able to offer BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to clients with a net worth of at least $1.5 million and a high risk tolerance.

As one expert noted, this decision could lead to more widespread adoption of Bitcoin (BTC) in the coming months.

“This latest taboo… with Morgan Stanley giving wealth advisors the green light to invest in Bitcoin ETFs, it’s only a matter of time before it gains momentum,” CNBC reporters said, referring to the new trend in advisor funds.

CNBC: “It’s the last taboo – as Morgan Stanley gives green light to wealth advisors to make allocations #Bitcoin “It’s only a matter of time before ETFs gain traction.” pic.twitter.com/xV7Q6rJwsR

— 21. Capital (@21._capital) August 8, 2024

The move signals greater acceptance of cryptocurrencies by major financial institutions and points to the potential for broader integration into traditional portfolios.

Bitcoin ETFs

Morgan Stanley’s decision reflects growing client demand for digital assets, despite skepticism from other major financial institutions like Goldman Sachs and JPMorgan that has restricted their advisors from proactively offering Bitcoin ETFs.

While Morgan Stanley is taking a cautious approach by only allowing select clients access to these ETFs, experts believe this could pave the way for wider adoption.

The SEC’s recent approval of 11 spot Bitcoin ETFs could mark the start of a new phase in the integration of Bitcoin into traditional investment portfolios.