Highlights
- Morgan Stanley seeks SEC nod for Bitcoin ETF access in 12 funds.
- Shift to allow broker endorsements could spike Bitcoin ETF demand.
- Morgan Stanley's strategy includes controlled Bitcoin ETF exposure.
Morgan Stanley, the American multinational investment bank, has filed a submission with the U.S. Securities and Exchange Commission (SEC) to permit the exposing of Bitcoin ETF to about a dozen of it investment funds.
This strategy seeks to diversify their clients’ investment strategies by including the fast-growing cryptocurrency market.
Funds Targeted for Bitcoin ETF Inclusion
The funds identified in the file with the SEC are the Advantage, Asia Opportunity, Counterpoint Global, Developing Opportunity, Global Insight, Global Opportunity, Global Permanence, Growth, Inception, International Advantage, International Opportunity, and Permanence Portfolios.
As per the filing, these funds will achieve indirect exposure to Bitcoin by investing in Bitcoin ETFs with specific caps to manage the exposure.
🚨 JUST IN: Morgan Stanley has filed with the SEC to get #Bitcoin ETF exposure for *12* of its funds.
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Soon to be sold by their 15,000+ brokers. pic.twitter.com/TEoPCdpshB
— Julian Fahrer (@Julian__Fahrer) April 29, 2024
Morgan Stanley highlighted in their filing that the risks in investing in Bitcoin ETFs are the same as the threats in direct investments in Bitcoin. The bank indicated that investing into Bitcoin ETFs would expose the funds to common Bitcoin-related risks and those particular to the ETFs.
This systematic approach is intended to control possible risks and give customers Bitcoin investment opportunities without direct contact with the very unstable cryptocurrency market.
Potential Increase in Demand for ETFs
This follows reports that Morgan Stanley might enable its 15,000 brokers to actively push Bitcoin ETFs to clients, unlike their prior situation where such promotions were only unsolicited. If approved, this change would lead to a substantial surge in demand for Bitcoin ETFs as the broker’s recommendations would be more free and align with client needs and risk profile.
Therefore, with the provision of BTC through the facility of ETFs, Morgan Stanley is addressing the demand for digital assets and positioning its portfolio to harness potential growth from the technological and financial innovation in cryptocurrency.
Such a development could pave the way for other financial institutions to embrace similar integrations and promote further institutional coverage of Bitcoin and other digital assets.
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