After the listing of Bitcoin spot ETF by Morgan Stanley in January this year, the company has been providing Bitcoin spot ETFs to clients, but not actively promoting them. However, it is now reported that the company plans to change its strategy and allow about 15,000 brokers under its management to actively promote the purchase of Bitcoin spot ETFs to clients.
According to AdvisorHub’s report, since the approval of Bitcoin spot ETF listing in January this year, Morgan Stanley, like many other peers, has been offering this product, but only for non-active promotion. Clients have to actively inquire about investment matters with their advisors. Although allowing advisors to recommend such products is expected to expand product demand, it will also make the company face additional legal responsibilities.
However, according to two knowledgeable executives, Morgan Stanley is planning to allow about 15,000 brokers under its management to promote the purchase of Bitcoin spot ETFs to clients. One of the knowledgeable executives stated that Morgan Stanley is trying to establish protective measures for the active promotion model, including risk tolerance requirements and restrictions on allocation and trading frequency.
One knowledgeable executive stated that Morgan Stanley will be very cautious about this and hopes to make Bitcoin spot ETFs accessible to every client in a controlled manner. However, the exact timing of the change has not been disclosed.
However, Morgan Stanley executives also stated that although clients have shown strong interest in Bitcoin spot ETFs, it is still a speculative purchase. Most clients only invest a small amount of money.
Other banks’ marketing situations
Other peers have also adopted similar cautious strategies. Bank of America’s Merrill Lynch and Wells Fargo Bank launched related products shortly after the approval of Bitcoin spot ETFs, but they also limited non-active solicitation purchases. In some cases, they even limited it to ultra-high net worth clients. For example, Merrill Lynch requires clients to have at least $10 million or more in assets to purchase Bitcoin spot ETFs.
LPL Financial, the largest independent broker-dealer in the United States, stated in February that the company plans to take 3 months to determine which Bitcoin funds can be offered to clients. Independent broker-dealer Cetera Financial Group has already been approved to offer 4 Bitcoin spot ETFs to clients in March.
Some institutions still refuse to offer such products
However, not all traditional financial institutions are actively entering the Bitcoin-related products. Raymond James Financial’s trading platform does not offer cryptocurrency products, and Vanguard also refuses to offer cryptocurrency products, stating that cryptocurrencies are more like speculation rather than investment, which is the fundamental reason why the company decides not to offer related products.
Further reading:
Wall Street’s Resistance: Vanguard prohibits customers from trading Bitcoin spot ETFs: BTC is an immature asset with no intrinsic economic value.
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