Morgan Stanley is conducting due diligence on the potential addition of spot Bitcoin ETFs to its brokerage platform, according to sources cited by CoinDesk.
The procedure was initiated following the approval of the instrument by the SEC.
The publication noted that the involvement of broker-dealers like Morgan Stanley and large RIA networks will attract more capital to these new products.
CoinDesk highlighted that the institution is a leader in alternative investments and private equity, managing assets exceeding $150 billion.
In 2021, Morgan Stanley became the first major U.S. bank to offer its wealthy clients access to Bitcoin funds.
On February 28, 2024, it was revealed that one of Morgan Stanley’s entities, the Europe Opportunity Fund, is ready to expand its list of available instruments to include spot ETFs based on digital gold. Such investments should not exceed 25% of AUM.
According to Bloomberg analyst Eric Balchunas, this move is a “preemptive defense,” reports The Block. The expert suggested that the fund included the provision in case it ever gains access to Bitcoin ETFs.
He noted that such mechanisms are strictly regulated, so they are the first to signal such developments.
Balchunas predicted that exchange-traded funds face “passing through the giant TradFi machine.”
CEO of Tether Paolo Ardoino predicted an increase in Wall Street investments in Bitcoin ETFs.
Previously, American banks complained about their lack of a role in managing the new product.