Morgan Stanley brokers could soon pitch Bitcoin ETFs to clients, insiders say

Banking giant Morgan Stanley could soon allow its 15,000 brokers to pitch Bitcoin exchange-traded funds (ETF) to their customers.

According to an AdvisorHub report citing executive sources, the bank has only offered these options on an unsolicited basis, meaning that brokers do not explicitly advise investing in Bitcoin ETF. Customers would have to reach out to their advisors at the brokerages.

As a part of the policy change, the bank is establishing a groundwork for solicited purchases. This will be accompanied by risk tolerance requirements, alongside limits placed on allocation and trading frequency.

“We are going to make sure everybody has access to it. We just want to do it in a controlled way,” one source added, signaling the bank’s cautious approach.

Since the introduction of Bitcoin ETFs in January, major brokerage players like Morgan Stanley, Merrill Lynch, and Wells Fargo have all dipped their toes in this market. However, much like Morgan Stanley, they limited purchases to a non-advisory basis.