Morgan Stanley Mulls Offering Spot Bitcoin ETF



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Asset Manager Morgan Stanley is reportedly considering offering a spot Bitcoin ETF on its brokerage platform. 

The advent of broker-dealers such as Morgan Stanley and large registered investment advisor (RIA) networks could help bring more investments into ETFs. 

Morgan Stanley Contemplating Spot Bitcoin ETF

Morgan Stanley is one of the largest broker-dealer platforms in the United States and has been actively evaluating offering spot bitcoin ETFs to clients since the United States Securities and Exchange Commission gave them the green light in January. Since their approval, spot Bitcoin ETFs have proved to be immensely successful. 

“JUST IN: $1.3 trillion asset manager Morgan Stanley is now considering offering spot #Bitcoin ETFs to customers.”

However, many believe the floodgates will not truly open until Bitcoin ETFs are offered by big registered investment advisor networks such as Morgan Stanley, Merrill Lynch, Wells Fargo, and several others. Ten spot Bitcoin ETFs are trading in the US, including Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. 

Due Diligence Underway 

Currently, the $1.3 trillion asset manager is doing its due diligence regarding introducing spot Bitcoin ETFs to its customers. Since their approval, spot Bitcoin ETFs have been an enormous success. More specifically, the IBTI Bitcoin ETF broke the daily trading volume for two consecutive days. In all, nine of the approved Spot Bitcoin ETFs have broken all-time trading volume records. 

“It’s official..the New Nine Bitcoin ETFs have broken all-time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%.”

Since the approval of the spot Bitcoin ETFs, BTC has surged to stratospheric levels and is currently trading just shy of the $63,000 mark. 

Morgan Stanley Fund Considers Bitcoin ETF Investment 

Meanwhile, Morgan Stanley’s Europe Opportunity Fund has opened up the possibility of investing in spot Bitcoin ETFs. According to a filing made with regulatory authorities, the fund is looking to allocate a portion of its assets to spot Bitcoin ETFs. However, this allocation will not exceed 25%. 

The possible inclusion of a spot Bitcoin ETF as an investment avenue marks a significant diversification in the fund’s investment strategy and aims to leverage the growing interest and returns from the crypto sector. According to the filing, a spot Bitcoin ETF offering would allow the fund to explore new growth avenues while adhering to a cap. This would ensure that most of the assets would remain invested in the fund’s core focus areas.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.



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