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Morgan Stanley Starts Spot Bitcoin ETF Purchases Via 15,000 Advisors
- Morgan Stanley’s 15,000 advisors can officially suggest Bitcoin ETFs to clients with a net worth of over US$1.5 million.
- Only BlackRock’s iShares and Fidelity’s Bitcoin funds are available at present.
- After a significant market drop, Bitcoin funds see net-positive flows, hinting at renewed investor interest.
- Community reactions have been mostly positive, with some claims of early interest in the funds.
And it’s official: Morgan Stanley advisors can now recommend Spot Bitcoin exchange-traded funds (ETFs) to their clients. And that’s a big deal, the move which had been known since earlier this week, will see a 15,000-strong advisor workforce introduce BTC to a broader clientele.
Related: Nasdaq and BlackRock Propose Options for iShares Ethereum Trust
However, there are limiting factors, such as a net worth of clients of at least US$1.5 million (AU$2.28 million) and a limit of investable funds. While there are nine BTC funds, for now only BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) are accessible.
With US$1 trillion (AU$1.52 trillion) in clients’ money in self-directed accounts and a total US$3.75 trillion (AU$5.71 trillion) within the entire network, this is as bullish a development as it gets.
That’s particularly true after the turbulent few days we have just witnessed.
Cascading out from Japan and into the equities markets of Australia, the US and others, including the crypto market, the crash saw over US$1 billion in crypto liquidations.
Bitcoin dropped 28% from its all-time high set in March of 2024, going from US$73,750 (AU$112,499) to currently US$56,929 (AU$86,840). The high came only weeks after Spot Bitcoin ETFs had been approved by the US Securities and Exchange Commission (SEC).
Bitcoin Funds See Positive Flow After Days of Red
Yesterday saw the first net-positive flows into all spot funds since 1 August. The funds brought in a combined US$45.1 million (AU$86.6 million) after the prior days saw US$554.4 million (AU$845.5 million) in combined outflows.
The strongest performer by far remains BlackRock’s IBIT, which saw US$52.5 million in inflows, bringing the total BTC in the fund to 344,010.92170 Bitcoin or just over US$20 billion (AU$30.5 billion).
Only time will tell if the Morgan Stanley news significantly impacts demand for Spot Bitcoin ETFs and specifically, BTC prices.
Related: IMF Shifts Crypto Policy Stance, Highlights Progress in El Salvador
But, the news has certainly started to stir some interest on Crypto X (formerly Crypto Twitter), with one commentator saying their phone has been “blowing up”, claiming they had already seen 14 people getting messages from Morgan Stanley advisors about the Bitcoin funds.
Notably, this is after just one hour – so, quite impressive.
And Dutch account Bitcoin Daily said that Morgan Stanley may have finally figured out that Bitcoin is the safe haven asset with the move to offer the funds to their clients:
Wealthy Morgan Stanley clients can call their advisors today to buy this bitcoin dip. In a fragile financial debt system full of counterparty risks, bitcoin is the safe haven. Have they figured this out at Morgan Stanley yet?
Bitcoin Daily – Nederlands Bitcoin Nieuws! 
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
