Financial services giant Morgan Stanley (MS) is reportedly exploring allowing its 15,000 brokers to directly recommend Bitcoin exchange-traded funds (ETFs) to clients. This shift from an unsolicited model, where customers had to initiate conversations about Bitcoin ETFs, reflects growing demand for these investment vehicles.
The news, originally reported by AdvisorHub, comes after the Securities and Exchange Commission (SEC) greenlit 11 spot Bitcoin ETFs in January. These ETFs, offered by major investment firms like BlackRock (BK) and Fidelity, allow investors to gain exposure to Bitcoin’s price movements without directly owning the cryptocurrency itself.
Initially, the launch of these ETFs saw a surge in investment, with both the funds and the underlying Bitcoin price experiencing significant inflows. However, recent reports suggest this momentum may be waning, with BlackRock’s ETF recording its first day of zero daily inflows on Wednesday, according to Farside.
Also Read: Spot ETF Spotlight: JPMorgan Predicts $36 Billion Migration from Existing Crypto Products.
Morgan Stanley’s potential policy change signifies a calculated approach to cater to this evolving market. “We’re going to make sure that we’re very careful about it,” an unnamed Morgan Stanley executive told AdvisorHub, emphasizing a desire to provide controlled access while meeting client demand.
This move by Morgan Stanley, if implemented, could be a game-changer for Bitcoin ETFs. With a vast network of brokers actively promoting these products, the market could experience renewed interest and potentially attract a wider investor base. However, it remains to be seen whether it will be enough to reverse the recent slowdown in inflows.
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