Morgan Stanley may launch Bitcoin ETF products in 2024

YEREVAN ( — Morgan Stanley, a Wall Street investment firm overseeing over $1.5 trillion in client assets, is reportedly close to introducing Bitcoin exchange-traded funds (ETFs) on its platform in the next two weeks, according to insider sources at the company.

Morgan Stanley Bitcoin ETF Approval Buzz - Source: @AP_Abacus Tweet
Morgan Stanley Bitcoin ETF Approval Buzz – Source: @AP_Abacus Tweet

These sources include the firm’s employees, Bitcoin ETF experts, and legal professionals.

Is Morgan Stanley Feeling Bitcoin ETF FOMO?

Morgan Stanley reportedly conducted thorough evaluations to spot Bitcoin ETF products on its brokerage platform potentially. Informed individuals close to the proceedings shared that the Wall Street firm began considering these offerings shortly after the SEC greenlit their U.S. debut in January.

As of March 27, the cumulative inflows into Bitcoin ETFs were worth over $2.48 billion, according to Farside data. This heightened interest in crypto investment vehicles hints that mainstream RIA networks and broker-dealer platforms, like those associated with Merrill Lynch, Morgan Stanley, and Wells Fargo, may start offering them to their institutional clients.

Bitcoin ETF inflows
Net cumulative flows into Bitcoin ETFs. Source: Farside

Morgan Stanley broke new ground as the first major U.S. bank to open doors to Bitcoin funds for its high-net-worth clients in 2021. In the first-quarter earnings call of that year, they confirmed offering wealth management clients a route to Bitcoin through two external crypto funds.

The bank’s former CFO, Jonathan Pruzan, noted at the time that qualified investors could now tap into two passive funds. Galaxy Digital and NYDIG provided these funds, making them accessible to those who met the criteria.

Bitwise CIO Has Good News

Bitwise’s Chief Investment Officer, Matt Hogan, has pinpointed Morgan Stanley as a potential major player in the burgeoning crypto funds market.

During a recent interview on CNBC, Hogan spoke about the escalating demand for crypto ETFs across investor demographics. He observed that what began with retail investor interest has now captivated hedge funds and other institutional investors, all eager to secure their share of the crypto ETF space.

Hogan specifically pointed to Morgan Stanley and Wells Fargo, anticipating their entry as a significant leap forward for Bitcoin ETFs.

He underscored the anticipation of “unlocking” these substantial wealth management platforms, which could serve as a watershed moment for the acceptance and growth of crypto ETFs.

Hogan also noted the emerging trend of corporates queuing up to invest in Bitcoin exchange-traded funds, emphasizing that this marks a pivotal chapter in the ETFs’ expansion, with the “flood gates” already open.

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