- Morgan Stanley will start offering spot Bitcoin ETFs on Wednesday, marking a major move for Bitcoin in traditional finance.
- Wells Fargo might follow Morgan Stanley's lead, potentially offering Bitcoin ETFs through its 15,000 brokers by next month.
- BlackRock’s Bitcoin ETF sees record inflows despite market turbulence, with institutional investors like Schonfeld leading.
Morgan Stanley, the $1.3 trillion asset manager, will offer its clients spot Bitcoin ETFs on Wednesday. Dubbed the largest and most significant move for Bitcoin into traditional finance, Wells Fargo and UBS—the other banking giants—are likely to extend Bitcoin exposure for their customers if Morgan Stanley succeeds.
Wells Fargo's Bitcoin ETF Strategy
Certain stories from last week showed how Wells Fargo could soon allow its financial advisors to offer Bitcoin ETFs to some of its clients. The bank is supposedly going to achieve this by the same route Morgan Stanley did some time ago, just authorizing its 15,000 brokers to recommend Bitcoin ETFs for brokerage clients. This strategy is therefore expected to meet the increasing customer demand for Bitcoin investments.
Sources close to the bank suggest that Wells Fargo would soon offer Bitcoin ETFs alongside other investment banks. The news was initially reported by cryptocurrency insider Andrews AP Abacus, who also broke the story of Morgan Stanley's ambitions to launch a Bitcoin ETF back in April.
Abacus further stated that Fidelity's Wise Origin Bitcoin Fund and BlackRock's iShares Bitcoin Trust are two additional ETFs that Wells Fargo may sell. He thinks that as early as next month, a complete platform approval might occur.
Expansion of Bitcoin ETF Offerings
Meanwhile, Morgan Stanley confirmed it can now offer Bitcoin ETFs in brokerage accounts but not in advisory accounts. This distinction is significant, as some teams saw 40% of client assets in advisory accounts and 60% in brokerage accounts. Consequently, this could impact how clients choose to allocate their assets.
Morgan Stanley's judgment was challenged by John Reed Stark, the former chief of SEC enforcement. He said that letting financial advisors suggest Bitcoin exchange-traded funds raises the danger for average investors.
Stark cautioned that because of the risks involved, certified financial planners can lose their certification. The CFP Board's Sanction Guidelines, Fitness Standards, and Procedural Rules have undergone the most current adjustments, which will take effect on July 1. He mentioned them.
Following US SEC approval, institutional and regular investors will be able to purchase Bitcoin ETFs from BlackRock and Fidelity, which may be used to diversify holdings. The wide circulation of Bitcoin is being paved by this approval.
Notably, the biggest holders of BlackRock's Bitcoin ETF (IBIT) are Schonfeld Strategic Advisors, Millennium Management, and Capula Management. In addition, record inflows are being seen in BlackRock's Ethereum ETF in spite of market turbulence.
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