Banking Giant Morgan Stanley Considers Allowing Solicited Purchases for Bitcoin ETFs

Morgan Stanley, a major American investment bank headquartered in New York, might enable approximately 15,000 of its brokers to propose Bitcoin ETF purchases for their clients, based on information from two unnamed high-ranking executives in a recent AdvisorHub report.

Up to now, the bank hasn’t actively suggested Bitcoin ETF investment to their advisors or clients. In simpler terms, there’s been no explicit endorsement from advisors for investing in a Bitcoin ETF.

According to the report, the alleged policy shift might significantly increase the appeal of popular Bitcoin ETFs, resulting in heightened demand.

One executive at Morgan Stanley, as reported by AdvisorHub, has explained that the financial institution is taking a cautious approach when it comes to allowing its large number of brokers to encourage clients to buy Bitcoin ETFs. To mitigate potential risks, they are developing guidelines such as allocation limits. The brokers must also consider each client’s risk tolerance before making recommendations. Morgan Stanley aims to facilitate investments in these products in a thoughtful and managed manner.

Major companies like Wells Fargo have yet to disclose any intentions regarding requested purchases.

Meanwhile, there are some troubling signs that demand for Bitcoin ETFs could be waning.  

As reported by U.Today, Bitcoin ETFs recorded $120 million worth of outflows on Wednesday. 

The price of Bitcoin, the top cryptocurrency, has now slipped back below the $64,000 level. 

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2024-04-25 11:21