Morgan Stanley becomes the first major U.S. bank to offer access to Bitcoin funds

Morgan Stanley, the American banking giant, has become the latest financial institution to start offering a Bitcoin fund to its institutional clients. The banking giant is reportedly offering three funds to its clients to help them gain exposure to Bitcoin, two of those offered funds are from Galaxy Digital and the third is a joint effort by asset manager FS Investments and Bitcoin firm NYDIG.

Morgan Stanley announced it on Wednesday in an internal memo sent to its financial advisers. The banking giant has more than $ 4 trillion in assets under its management and its new bitcoin fund would only be available to its high net worth clients.

The company said its new bitcoin fund would be suitable for people with “an aggressive risk tolerance” who have at least $ 2 million in assets held by the company. Investment firms need at least $ 5 million in the bank to qualify for new holdings.

Consumer finance giants rush to Bitcoin

Morgan Stanley’s decision to offer Bitcoin exposure to its high net worth clients comes as no total surprise given that growing demand for Bitcoin has forced many traditional giants to offer exposure to bitcoin directly or through investments in companies. such as MicroStrategy and Tesla who have Bitcoin in their Treasury.

Prior to Morgan Stanley’s move, the oldest custodian bank in the United States, BNY Mellon, also began offering Bitcoin exposure to its clients last month. At the start of the bull run, Fortune 500 companies such as MicroStrategy and later Tesla were the first to recognize Bitcoin’s potential as a cash hedging asset, and later mainstream banking giants like JP Morgan and now. Morgan Stanley have decided to offer the Bitcoin fund to its clients amid growing demand.

The fact that JP Morgan only claimed last month that a Bitcoin fund would be added as per the customer’s request and a few days ago Bitcoin and crypto funds were added. This is a clear example of the growing demand for Bitcoin among institutions, which could force many other banking giants to follow in Morgan Stanley’s footsteps.


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