Morgan Stanley reportedly advised advisors to refrain from buying Bitcoin futures ETF for clients

One of the leading US investment banks, Morgan Stanley, has prohibited staff in the wealth-management division from offering clients the ProShares futures-based Bitcoin ETF. This is reported by Business Insider, citing sources.

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The institution is evaluating the prospectus and conducting a comprehensive legal review of the fund.

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Representatives of the bank declined to comment to the publication.

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In an interview, Mark Hefele, head of investments at UBS Global Wealth Management, noted that he advises clients to consider alternative investments. He said the organisation is considering crypto products only for speculative investors with a high risk tolerance.

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The ProShares Bitcoin futures ETF posted the second-most actively traded debut. According to the sponsor, investments in the product over the first two days reached $1.1 billion.

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Earlier in March, CNBC sources reported that Morgan Stanley planned to offer accredited investors with at least $2 million in capital access to bitcoin funds.

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Investments in the instruments were capped at 2.5% of the bank’s own capital.

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In April, in its filing with the SEC, did not exclude adding derivatives on the first cryptocurrency to 12 of its own funds.

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In June, New York Digital Investment Group and FS Investments filed with the SEC an application to register a bitcoin fund intended for Morgan Stanley clients.

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In September, Morgan Stanley began assembling a team that would focus on studying the impact of cryptocurrencies on equities and fixed-income instruments.

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