Banking giant Morgan Stanley is considering allowing its 15,000 brokers to offer Bitcoin exchange-traded funds (ETF) to clients. Previously, brokers could only provide these options upon request. Clients will now have the opportunity to proactively discuss Bitcoin ETF investments with their advisors.
As part of this policy change, Morgan Stanley will implement risk tolerance requirements and set limits on allocation and trading frequency to ensure a controlled approach to Bitcoin ETFs. The goal is to provide access to these investments while managing potential risks.
Major brokerage firms like Merrill Lynch and Wells Fargo have also entered the Bitcoin ETF market, but similar to Morgan Stanley, they have limited purchases to a non-advisory basis.
The move by Morgan Stanley reflects the increasing demand for Bitcoin ETFs among institutional investors. While clients are intrigued by Bitcoin as an asset, it is still viewed as speculative by many. Despite this perception, Bitcoin ETFs have attracted significant investment inflows in recent months.
However, the growth in Bitcoin ETF investments appears to be slowing down, as evidenced by zero daily inflows from BlackRock on April 24. Other issuers, such as Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), have experienced modest inflows. The U.S. Bitcoin ETF market currently holds around $12.3 billion in Bitcoin investments.

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