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Morgan Stanley tells financial advisers they can pitch Bitcoin ETFs as crypto bets big on Trump presidency: report

By
Taylor Herzlich
Published Aug. 2, 2024, 7:39 p.m. ET

Morgan Stanley is reportedly jumping on board with Bitcoin ETFs.

Some 15,000 Morgan Stanley advisers were told they can start guiding clients’ purchase of shares in BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, CNBC reported based on anonymous sources.

The reported policy switch by Morgan Stanley — the sixth largest US bank — comes as crypto investors have been betting big on Donald Trump winning the presidency in November, hoping the former president will relax industry regulations if he gains the White House. 

Electronic signs at the Morgan Stanley headquarters in New York on March 4, 2021.
Morgan Stanley allegedly told its financial advisors they can begin offering clients Bitcoin ETFs, a report said on Friday. AP

In January, the SEC approved applications for 11 spot bitcoin ETFs. The move made it easier for people to invest in a Bitcoin ETF from the same place they manage their other stocks, and gave investors a crypto vehicle that can be more readily traded. 

Most Wall Street giants – including Goldman Sachs, JPMorgan, Bank of America and Wells Fargo – have banned their financial advisors from pitching Bitcoin ETFs, the report said. 

Morgan Stanley’s reversal is a response to client demand and an attempt to keep up with a changing industry, anonymous sources told CNBC.

Morgan Stanley corporate logo on their world headquarters building in New York.
Most Wall Street giants have banned their financial advisers from pitching Bitcoin ETFs. REUTERS

The policy change is not without its terms. Financial advisors can only approach clients with a net worth of at least $1.5 million, a high risk tolerance and a desire to make speculative investments for the new Bitcoin ETFs, sources told CNBC.

The Bitcoin ETFs are meant for taxable brokerage accounts, not retirement accounts, and the bank will monitor clients’ crypto holdings so they are not exposed to high volatility, sources told CNBC.

In 2021, Morgan Stanley became the first major US bank to offer Bitcoin funds to its clients.

The bank phased out private funds from Galaxy and FS NYDIG earlier this year, according to CNBC.