Morgan Stanley, after the launch of its Bitcoin spot ETF in January this year, has been offering Bitcoin spot ETFs to its clients, but not actively promoting them. However, it is now reported that the company plans to change its strategy and allow its approximately 15,000 brokers to actively promote the purchase of Bitcoin spot ETFs to clients.
According to AdvisorHub, since the approval of the Bitcoin spot ETF for listing in January this year, Morgan Stanley, like many other industry peers, has been offering this product, but only on a non-solicitation basis, where clients have to proactively inquire about investment matters with their advisors. Allowing advisors to recommend such products is expected to expand product demand, but it will also expose the company to additional legal responsibilities.
However, according to two knowledgeable executives, Morgan Stanley is planning to allow its approximately 15,000 brokers to promote the purchase of Bitcoin spot ETFs to clients. One of the executives stated that Morgan Stanley is trying to establish protective measures for the active solicitation model, including risk tolerance requirements and restrictions on allocation and trading frequency.
One executive said that Morgan Stanley will approach this with great caution, hoping to make Bitcoin spot ETFs accessible to every client in a controlled manner, but the exact timing of the change has not been disclosed.
However, Morgan Stanley executives also stated that although clients have shown strong interest in Bitcoin spot ETFs, it is still a speculative purchase, and most clients only invest a small amount.
Other banks’ marketing situation
Other peers have also adopted similar cautious strategies. Bank of America’s Merrill Lynch and Wells Fargo Bank launched related products shortly after the approval of Bitcoin spot ETFs, but they also limited solicitation and, in some cases, only targeted ultra-high-net-worth clients. For example, Merrill Lynch requires clients to have at least $10 million or more in assets to purchase Bitcoin spot ETFs.
LPL Financial, the largest independent broker-dealer in the United States, announced in February that the company plans to take three months to determine which Bitcoin funds it can offer to clients. Cetera Financial Group, an independent broker-dealer, has already approved the provision of four Bitcoin spot ETFs to clients in March.
Some institutions still refuse to offer such products
However, not all traditional financial institutions are actively entering the Bitcoin-related product market. Raymond James Financial’s trading platform does not offer cryptocurrency products, and Vanguard has refused to provide cryptocurrency products, stating that cryptocurrencies are more like speculation than investment, which is the fundamental reason why the company decided not to offer such products.
Read more:
Wall Street’s Resistance: Vanguard Bans Trading of Bitcoin Spot ETF: BTC is an Immature Asset with No Intrinsic Economic Value
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