Morgan Stanley Evaluating Spot Bitcoin ETFs for its Brokerage Platform: Report
Morgan Stanley is reportedly considering adding spot Bitcoin exchange-traded funds (ETFs) to its brokerage platform. The company is currently conducting due diligence on the matter, according to a CoinDesk report that cites two sources familiar with the situation.
Increased Interest in Spot Bitcoin ETFs
There has been a surge in interest in spot Bitcoin ETFs following the approval of nearly a dozen products by the U.S. Securities and Exchange Commission (SEC) in January.
According to the CoinDesk report, Morgan Stanley, one of the largest broker-dealer platforms in the U.S., has been evaluating the possibility of offering spot Bitcoin ETFs to its clients since the SEC’s approval.
Bitcoin ETFs Gain Momentum
Since then, spot Bitcoin ETFs in the U.S. have experienced record-breaking daily trading volumes. BlackRock’s IBIT, for example, achieved its personal best for three consecutive days, reaching $3.3 billion in trading volume. Fidelity’s spot Bitcoin ETF also doubled its previous record with $1.4 billion in trading volume on the same day, as reported by Bloomberg analyst James Seyffart.
Seyffart mentioned on Twitter that “$IBIT took in a record $612 million on its own. On a net basis, the group took in $673 million. This beats the day 1 record of $655 million.” BlackRock’s IBIT has now surpassed $9 billion in assets, according to Seyffart.
Wall Street Banks Show Interest in Crypto ETFs and ETPs
Traditional financial institutions are increasingly exploring cryptocurrency offerings. In 2021, Goldman Sachs, ICAP, JPMorgan, and UBS were reported to be purchasing exchange-traded products (ETPs) that provide exposure to cryptocurrency for their clients, according to Bloomberg terminal data reviewed by CoinDesk.
Experiencing FOMO?
It appears that major banks like Morgan Stanley are experiencing fear of missing out (FOMO) and want to join the crypto bandwagon. After witnessing the success of BlackRock’s Bitcoin product IBIT, there may be a new wave of investment banks entering the market.
Spot Ethereum ETFs Next?
Following the approval of spot Bitcoin ETFs, several investment firms have filed applications with the SEC to launch spot Ethereum ETFs. The demand for such products continues to grow, and companies like BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, Ark Invests, and 21Shares have all submitted applications.
Hot Take: Morgan Stanley Explores Spot Bitcoin ETFs
Morgan Stanley is reportedly considering adding spot Bitcoin ETFs to its brokerage platform. This comes as interest in spot Bitcoin ETFs grows following the SEC’s approval of several products in January. The surge in trading volumes for these ETFs indicates a high level of investor demand.
Wall Street banks are also showing increased interest in cryptocurrency offerings. Banks like Goldman Sachs, JPMorgan, and UBS have been purchasing ETPs that provide exposure to cryptocurrencies for their clients.
The success of BlackRock’s Bitcoin product IBIT seems to have sparked FOMO among other major banks like Morgan Stanley. They don’t want to miss out on the potential gains from offering crypto investment options.
The approval of spot Bitcoin ETFs has also led to a flurry of applications for spot Ethereum ETFs. Investment firms like BlackRock, Fidelity, and Grayscale are among those seeking to launch these products.
Morgan Stanley’s potential entry into the spot Bitcoin ETF market could further legitimize and popularize cryptocurrency investments among traditional investors.
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