• February 8, 2023

With Bitcoin On The Rise, Morgan Stanley Joins Institutional Adopters

By Landon Manning

As Bitcoin continues to grow above expectations, traditional financial institutions continue to look for ways to give their customers access to this lucrative market. Now Morgan Stanley is the latest to join the trend.

On March 17, the financial conglomerate became announced The move to give its top customers access to Bitcoin funds. While there would still be some isolation separating these investors from the actual Bitcoin itself, this step marks a significant step on the banks’ journey towards fully adopting cryptocurrency.

Basically, these Bitcoin fund options look like this: In about a month, Morgan Stanley will be allowing its current “high risk” clients to invest in these funds. To qualify, clients must have at least $ 2 million in assets held by Morgan Stanley, have held accounts with the bank for more than six months, and only up to 2.5 percent of their net assets in addition to the funds Investing in these funds can require the aforementioned risk tolerance.

However, once those hurdles are cleared, these clients can invest in three different funds, two from Galaxy Digital and one from FS Investments and NYDIG. The exact details of client involvement with these funds are a bit blurry at the moment. according to CNBC, with sources claiming that customers are demanding “exposure” to cryptocurrency, and these funds may offer both an investment tied to Bitcoin’s relative success and actual ownership of the currency.

This is all a very new process, and Morgan Stanley has stated that a large part of his preparation in the month leading up to the program’s launch will be training his own in-house financial advisors in the world of cryptocurrency investing. However, depending on the success, a variety of possibilities can open up. The bank has already set requirements for new funds wishing to join the three funds currently listed, such as: B. Cash of $ 5 million.

This message follows some other banks that are carefully trying to break into the world of Bitcoin. For example, earlier this month, both Goldman Sachs and JPMorgan Chase & Co. announced plans to open the space to their customers. Regulatory uncertainty has prevented them from doing a broader rollout, as is likely the case with Morgan Stanley. However, lukewarm first steps are paired with an insatiable demand for practical uses and a vocal support for the potential problems of cryptocurrency.

Even if skepticism remains in the banking industry, it is absolutely clear that the previous contempt that the field had for Bitcoin in the past is simply no longer possible. Although, for example, Deutsche Bank has not expanded any specific plans other than these discussed Bitcoin was labeled “too big to ignore” at the World Economic Forum in December report from March 18th. The banking sector was by no means at the forefront of Bitcoin adoption over the years, but it looks like the ridicule and the naysaying in the face of the runaway success of the world’s top cryptocurrency are gone for good.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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