The recently launched spot Bitcoin (BTC) exchange-traded funds (ETFs) have left an impression on the watchful eyes of Wall Street investors, who now appear eager to get in on the price action as reports have emerged that Morgan Stanley is performing its due diligence before adding select ETFs to its brokerage platform.
According to a report from CoinDesk, two people with knowledge on the matter said the firm has been evaluating the prospect of offering their clients access to spot BTC ETFs ever since they were approved for launch on the U.S. market in January.
Morgan Stanley, which is among the largest U.S. broker-dealer platforms with $1.4 trillion in assets under management, has thus far declined to comment on the matter, but several crypto sleuths have found signs that the firm may soon list multiple ETFs.
As Matt Walsh, a General Partner at Castle Island Ventures, noted on X, the firm is currently in the process of “launching a European Opportunities Fund that will invest in Bitcoin Futures and Bitcoin spot ETFs.”
Morgan Stanley is launching a European Opportunities Fund that will invest in Bitcoin Futures and Bitcoin spot ETFs. Probably nothing. https://t.co/E5wNaAXnMH pic.twitter.com/ojUdG2JhTV
— Matt Walsh (@MattWalshInBos) February 28, 2024
There’s a high likelihood that the reports are true as Morgan Stanley, which is also a leader in the alternative investments and private market space, was the first major U.S. bank to offer its wealthy clients access to Bitcoin in 2021 via a pair of external crypto funds.
And the firm has only expanded its access since then, both in the U.S. and abroad.
According to multiple analysts, this development is significant because the majority of big registered investment advisor (RIA) networks and broker-dealers platforms – including Merrill Lynch, Morgan Stanley, Wells Fargo, and others – have yet to offer Bitcoin access to their clients, a development they say will really open the investment floodgates into BTC ETFs.
If Morgan Stanley is considering offering its clients access to spot BTC ETFs, other firms are likely doing so as well, and it may only be a matter of time until Wall Street initiates the next leg up in this bull market.
According to X user Andrew, founder of x3, along with Morgan Stanley, UBS is also considering moving up their timeline to list the products after receiving multiple inquiries from clients.
UPDATE: expecting @UBS and @MorganStanley to platform multiple #Bitcoin ETF’s in March.
Per sources at both firms:
UBS: “client questions and appetite are unavoidable at this point; moving up our timeline.”
Morgan Stanley: “the normal 90 day process for new products looks…— Andrew (@AP_Abacus) February 29, 2024
The reason for the increased demand from clients and hastened timelines for listing was summed up succinctly by market analyst Brian Maass.
