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 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.
In January, the Securities and Exchange Commission (SEC) approved 11 applications for
