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One of the major financial companies, Morgan Stanley, is contemplating allowing its 15,000 brokers to actively trade Bitcoin exchange-traded funds (ETFs).
AdvisorHub informs us that the company might take this move in order to take advantage of the demand for cryptocurrency investments. There are no solicitations. Morgan Stanley sold Bitcoin ETFs, so that means buyers have to call their advisors to invest. The company may increase its market share by permitting advisors to actively promote these products, but it would cause a liability.
According to two senior officials quoted by the WSJ, Morgan Stanley is putting “guardrails” on the requested transactions. Tolerance of risk, allocation, and trading frequency fall into such measures. Management did not date these policy adjustments. Morgan Stanley adheres to industry norms.
Following the granting of regulatory consent in January, several major banks, including Merrill Lynch and Wells Fargo, launched Bitcoin ETFs. Nevertheless, they prohibited unsolicited buying and, at times, traded only with the ultra-rich. Merrill Lynch requires $10 million in assets to acquire a Bitcoin ETF.
Some institutions do not offer crypto ETFs
Eleven bitcoin-ETF applications were allowed by the SEC in January, including BlackRock, Ark Investments, Fidelity, Invesco, and VanEck.
Some of these firms do not offer Bitcoin ETFs to investors. The removal of bitcoin products has been done by Vanguard and Raymond James Financial because of concerns regarding long-term portfolio fit.
In February, LPL Financial, the largest independent brokerage with over 22,000 brokers, stated that it would assess which Bitcoin funds to add to its list of products. But their progress has not been published in an official way.
In March, Cetera Financial Group, which is another independent broker-dealer, approved four Bitcoin ETFs for advisors. The firm imposed allocation constraints and required high risk tolerances. While consumers are enthusiastic about Bitcoin ETFs, another Morgan Stanley executive said that they are still speculative.