Morgan Stanely, the largest wealth manager in the US, began allowing its 15,000 financial advisers to recommend Bitcoin exchange-traded funds (ETFs) to clients, particularly BlackRock and Fidelity.
An earlier CNBC report, which stated that the financial advisory intended to begin recommending BTC ETFs on August 7, was confirmed by the individual in question, who was not authorized to speak publicly.
Morgan Stanley recommends only two products: Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
Winning over Morgan Stanley is a significant milestone for the cryptocurrency industry. Morgan Stanley is the greatest wirehouse. Financialplanning.com reports that its advisory network oversees approximately $3.75 trillion, with $1 trillion in self-directed client accounts.
BlackRock’s IBIT and Fidelity’s FBTC are becoming prominent blue-chip BTC ETFs. Roxanna Islam, the chief of sector and industry research at VettaFi and a fund researcher informed Cointelegraph that they are witnessing adoption among wirehouses such as Morgan Stanley and independent financial advisers.
“Demand for these spot crypto ETPs has been robust across all client segments since their launch, and it is thrilling to observe the potential this asset class has to offer among retail investors, RIAs, institutional investors, and beyond,” stated Matt Horne, head of digital asset strategists at Fidelity Investments, in an interview with Cointelegraph.”
Matthew Sigel, VanEck’s chief of digital assets research, stated to Cointelegraph that prominent advisory platforms’ continued adoption of spot BTC ETFs could significantly increase adviser inflows.
Until recently, the most significant financial advisory firms, known as wirehouses, have been hesitant to adopt spot crypto ETFs. Independent investment advisors (RIAs) were the sole source of financial adviser inflows in the past.
Horne noted that the RIA community is known for being early adopters of investment vehicles, such as the ETF. This trend has continued with the recent spot crypto ETPs.
