Morgan Stanley, the leading wealth manager in the U.S., has given its 15,000 financial advisors the green light to recommend Bitcoin exchange-traded funds (ETFs) to clients.
This move, effective August 7, marks a significant step for the mainstream acceptance of cryptocurrencies.
The advisory platform is initially focusing on two Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
These funds are becoming popular choices among financial advisors and investors due to their solid backing and growing adoption.
With Morgan Stanley’s advisory network managing approximately $3.75 trillion, including $1 trillion in self-directed client accounts, the decision to include Bitcoin ETFs is a milestone for the crypto market.
This could potentially lead to a surge in investments from various client segments, ranging from retail investors to institutional clients.
BlackRock and Fidelity’s Bitcoin ETFs are gaining traction not just within wirehouses like Morgan Stanley, but also among independent financial advisors.
Matt Horne, head of digital asset strategists at Fidelity Investments, noted the strong demand across all client segments, highlighting the broad appeal of these investment products.
This development is noteworthy as large financial advisory firms, also known as wirehouses, have historically been cautious about adopting spot crypto ETFs.
Until now, investments in these products were mainly driven by registered investment advisors (RIAs), who are often early adopters of new investment vehicles.
Roxanna Islam, head of sector and industry research at VettaFi, pointed out that the popularity of these Bitcoin ETFs indicates their potential as blue-chip assets in the crypto space.
Similarly, Matthew Sigel from VanEck predicted that the approval by major advisory platforms could lead to significant inflows into Bitcoin ETFs, further integrating cryptocurrencies into mainstream investment portfolios.