October 3, 2022

Just-in: Morgan Stanley Becomes First Major United States Bank to Offer Access to Bitcoin Funds

2 min read

Morgan Stanley, the American Banking giant has ended up being the most recent banks to begin using a Bitcoin Fund to its institutional customers. The banking giant would offer 3 funds to its clients to help them gain direct exposure to Bitcoin, two of these funds on offer are from Galaxy Digital, and the third is a joint effort from asset supervisor FS Investments and bitcoin business NYDIG.

Morgan Stanley announced on Wednesday in an internal memo sent to its financial advisors. The banking giant has over $4 trillion worth of properties under its management and its brand-new bitcoin fund would be offered to its rich clients only.

The firm said their new bitcoin fund would be suitable for individuals with “an aggressive risk tolerance” who have at least $2 million in assets held by the firm. Financial investment companies need at least $5 million at the bank to receive the new stakes.

Mainstream Financial Giants Rush to Bitcoin

Morgan Stanley’s decision to provide Bitcoin direct exposure to its wealthy clients does not come as a complete surprise offered the growing demand for Bitcoin has required numerous conventional giants to either offer direct bitcoin direct exposure or via investment in firms such as MicroStrategy and Tesla which owns Bitcoin in their treasury.

Before Morgan Stanley’s choice, the oldest custody bank in the US BNY Mellon likewise began providing Bitcoin exposure to its customers last month. At the start of the bull run, fortune 500 business such as MicroStrategy and later on Tesla was the very first to recognize Bitcoin’s potential as the treasury hedging asset, and later on standard banking giants consisting of JP Morgan and now Morgan Stanley have actually decided to offer Bitcoin fund to its customers amid growing need.

The fact that JP Morgan just last month declared that a Bitcoin Fund would be included as per customer’s demand and a couple of days back included Bitcoin and crypto funds. This is a clear example of growing Bitcoin demand among organizations which might force many more banking giants to follow in the steps of Morgan Stanley.

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