Morgan Stanley is set to become one of the first major brokerage firms to offer spot bitcoin exchange-traded funds (ETFs) to its wealthier clients. The New York-based financial services giant has announced that its 15,000 financial advisors will begin offering select bitcoin ETFs to clients with assets exceeding $1.5 million starting this week.
This development follows the introduction of the first spot bitcoin ETFs in January and the recent launch of spot Ethereum ETFs. The move comes during a period of significant market volatility, with bitcoin’s price dropping nearly 20% in the past week alone, following the release of weaker-than-expected U.S. jobs data, according to CoinMarketCap. Bitcoin is currently trading around $54,500.
Morgan Stanley will initially offer only two of the 11 available spot bitcoin ETFs: the $11.8 billion Fidelity Wise Origin Bitcoin Fund (FBTC) and the $22.6 billion iShares Bitcoin Trust (IBIT).
Industry observers view Morgan Stanley’s decision as a key step toward broader cryptocurrency adoption. “The mainstreaming of crypto continues,” commented Ric Edelman, founder of the Digital Assets Council of Financial Professionals. He anticipates that other major financial institutions will follow suit, integrating crypto allocations into client portfolios as a routine practice.
Edelman also sees the recent market downturn as a potential buying opportunity across asset classes, including cryptocurrencies. “Smart advisors and investors will take advantage of this,” he said.
Svetlin Krastev, founder of Black Sea Gold Advisors, characterized Morgan Stanley’s move as a natural progression in the mass adoption of bitcoin. He noted that while bitcoin is highly volatile, it serves as a useful diversifier due to its low correlation with other assets.
John Bovard, owner of Incline Wealth Advisors, speculated that Morgan Stanley’s decision reflects a strategic move to stay ahead in the rapidly evolving crypto space. “The adoption by these advisors will likely lead to a turnaround for bitcoin,” he said, emphasizing the potential for a rally given the significant assets managed by these institutions.
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