Wells Fargo is also considering allowing advisors to offer Bitcoin ETFs, responding to increasing customer demand for Bitcoin investments.
Beginning on Wednesday, investment advisors working for Morgan Stanley, a global asset management firm with a total value of $1.3 trillion will begin offering spot Bitcoin exchange-traded funds (ETFs) to their clients.
In an effort to assist their customers in gaining exposure to Bitcoin, major financial institutions such as Wells Fargo and UBS are likely to follow Morgan Stanley’s lead.
Wells Fargo Likely to Recommend Bitcoin ETFs To Clients
The world’s largest financial institution, Wells Fargo, is reportedly considering allowing its financial advisors to offer Bitcoin exchange-traded funds (ETFs) to some clients.
The bank is likely to employ a technique similar to Morgan Stanley’s, which has authorized its 15,000 brokers to propose Bitcoin exchange-traded funds (ETFs) in brokerage accounts.
According to a number of insiders within the bank, they are certain that they will swiftly join other investment banks in the competition to satisfy the growing demand from customers for Bitcoin investments.
Andrews AP Abacus, a crypto insider was the first to break the news. This is similar to his previous post from April, in which he discussed Morgan Stanley’s intention to offer exposure to Bitcoin exchange-traded funds.Â
Along with BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, he stated that Wells Fargo is the next financial institution to provide exposure to other exchange-traded funds (ETFs).
He anticipates a complete platform approval within the next month. In the meantime, a head of private clients and family offices stated that Morgan Stanley is now able to offer Bitcoin exchange-traded funds (ETFs) in brokerage accounts in addition to offering them in advisory accounts.
Additionally, he mentioned that several teams had forty percent of their total client assets in advising accounts and sixty percent in brokerage accounts.
Former SEC Official Reacts To Morgan Stanley’s Move
John Reed Stark, who served as the former Chief of Enforcement for the Securities and Exchange Commission, expressed his disapproval of Morgan Stanley’s plan to permit investment advisors to recommend Bitcoin exchange-traded funds (ETFs) to their clients.
According to him, these certified financial planners (CFPs) ran the risk of having their CFP certificates rendered invalid. Continuing his anti-crypto stance, Stark stated that it increases the risk level for retail investors at Morgan Stanley.
The reason for this is the significant risks and uncertainties associated with investments in cryptoassets. The CFP Board recently enacted the updated Sanction Guidelines, revised Fitness Standards and revised Procedural Rules, which came into effect on July 1 of this year.
However, the United States Securities and Exchange Commission (SEC) has licensed BlackRock and Fidelity Bitcoin exchange-traded funds (ETFs), which enable regular and institutional investors to diversify their investments.
In this way, Bitcoin is able to gain widespread acceptance. In the BlackRock Bitcoin Exchange-Traded Fund (IBIT), the three largest holders are Millennium Management, Capula Management and Schonfeld Strategic Advisors among other investors.
Despite the overall market instability, the BlackRock Ethereum Exchange-Traded Fund (ETF) is currently experiencing record inflows.Â
