Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Morgan Stanley Considers Allowing Brokers to Recommend Spot Bitcoin ETFs to Clients

Morgan Stanley, one of the leading financial institutions, is reportedly exploring the possibility of expanding its sales of Bitcoin exchange-traded funds (ETFs) by allowing its approximately 15,000 brokers to actively recommend these products to customers. 

This potential move comes as the firm aims to tap into the growing demand for cryptocurrency investments, according to a report from AdvisorHub.

Currently, Morgan Stanley offers Bitcoin ETFs on an unsolicited basis, meaning that customers must approach their advisors independently to express interest in investing. 

By enabling advisors to actively recommend these products, the firm could potentially broaden its customer base, although it would also expose itself to additional liability.

Morgan Stanley is Establishing Safeguards


Morgan Stanley is in the process of establishing certain safeguards, or “guardrails,” for solicited purchases, the report said, citing two senior executives familiar with the matter.

These measures would include requirements related to risk tolerance, limits on allocation, and trading frequency. 

The executives did not provide a specific timeline for when the firm might implement these policy changes.

The approach taken by Morgan Stanley aligns with that of its peers in the industry. 

Other major banks, such as Bank of America’s Merrill Lynch and Wells Fargo, introduced Bitcoin ETFs shortly after their regulatory approval in January. 

However, they also limited access to unsolicited purchases, and in some cases, exclusively catered to ultra-wealthy clients. 

Merrill Lynch, for example, set a minimum asset threshold of $10 million for customers interested in purchasing a Bitcoin ETF. 

Not All Institutions Offer Crypto ETFs


In January, the Securities and Exchange Commission (SEC) approved 11 applications for Bitcoin ETFs, including those from BlackRock, Ark Investments, Fidelity, Invesco, and VanEck. 

However, not all of these firms have made their Bitcoin ETFs available to investors. 

Some financial institutions, like Raymond James Financial and Vanguard, have chosen not to offer cryptocurrency products, citing concerns about their suitability for long-term portfolios.

LPL Financial, the largest independent brokerage with over 22,000 brokers, announced plans in February to evaluate which Bitcoin funds it could offer to customers. 

However, there has been no official update on their progress. 

Cetera Financial Group, another independent broker-dealer, approved four Bitcoin ETFs for its advisors in March. 

The firm implemented allocation limits and required customers to have aggressive risk tolerances.

While customers have shown considerable interest in Bitcoin ETFs, a second executive from Morgan Stanley noted that it is still regarded as a speculative investment. 

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

Meanwhile, Hong Kong is gearing up to launch its much-anticipated spot Bitcoin and Ethereum ETFs by the end of April

The Hong Kong Securities and Futures Commission (SFC) recently granted approval to several fund managers to offer these ETFs in a bid to establish itself as a hub for digital assets by introducing a range of cryptocurrency ETFs. 

The post Morgan Stanley Considers Allowing Brokers to Recommend Spot Bitcoin ETFs to Clients appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Oracleofomahasays.com