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Morgan Stanley Assembles 15,000 Brokers Army to Promote Bitcoin ETFs

2 mins
Updated by Harsh Notariya
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In Brief

  • A recent report said that Morgan Stanley is increasing Bitcoin ETF accessibility for clients.
  • Yet, Morgan Stanley still emphasizes caution as financial advisors gain proactive capabilities.
  • One of the firm's executives highlight the speculative nature of Bitcoin (BTC) investments.
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In an ambitious stride, Morgan Stanley is setting the stage to expand its Bitcoin exchange-traded funds (ETFs) offerings significantly. According to the latest report, the financial behemoth is poised to permit its approximately 15,000 brokers to recommend Bitcoin ETFs to clients proactively.

This move could dramatically widen consumer access and potentially boost the demand for these digital asset funds.

Morgan Stanley Chooses the Careful Approaches

Previously, since the regulatory green light in January, Morgan Stanley, like its industry counterparts, limited its Bitcoin ETF dealings to unsolicited transactions.

Clients interested in dipping their toes into the cryptocurrency pool had to initiate conversations with their advisors. This conservative approach mirrored the broader industry’s cautious entry into the crypto market.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Indeed, the decision to shift from a passive to an active solicitation model has its challenges. According to senior executives at Morgan Stanley, the firm is crafting “guardrails” to ensure this new strategy runs within a controlled environment. These safeguards include stringent risk tolerance assessments and caps on how much and how often clients can trade these products.

“We’re going to make sure we’re very careful about it. We are going to make sure everybody has access to it. We just want to do it in a controlled way,” one of Morgan Stanley’s executives explained.

Morgan Stanley’s careful planning reflects a broader hesitation across the financial sector to fully embrace cryptocurrencies despite their growing popularity.

Notably, peers such as Merrill Lynch and Wells Fargo have also introduced Bitcoin ETFs post-regulatory approval but continue to restrict access primarily to ultra-wealthy clients. For instance, Merrill requires a client to possess assets north of $10 million to engage in Bitcoin ETF transactions.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

Despite the excitement, another Morgan Stanley executive underscored the speculative nature of Bitcoin investments, tempering expectations.

“Our clients aren’t betting the ranch on Bitcoin. For most of those people, it’s quite interesting, so they put in a little bit of money,” the executive said.

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Lynn Wang
Lynn Wang is a seasoned journalist and content creator with over eight years of experience in digital marketing and cryptocurrency journalism. Her expertise lies in SEO strategy, blockchain technology, and Web3, where she has consistently delivered impactful content initiatives and engaged audiences effectively. Since January 2022, Lynn has been at the forefront of content and community efforts for BeInCrypto Indonesia. Under her leadership, the platform has witnessed remarkable growth,...