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Sources familiar with the matter said that the banking giant is willing to offer its wealth management exposure to Bitcoin via some products instead of direct ownership.
In a first-of-its-kind move, US banking giant Morgan Stanley said it will allow its wealth management clients to gain access to Bitcoin funds. In an internal memo released to its financial advisor on Wednesday, March 17, the banking giant made the announcement.
Morgan Stanley is a big name in wealth management with over $4 trillion in assets under management. Thus, the company is now willing to give its clients access to two funds that enable ownership of Bitcoin (BTC).
This is also one of the most significant steps in getting Bitcoin (BTC) closer to Wall Street. The source familiar with the matter said that Morgan Stanley will offer access to two major Bitcoin funds: NYDIG and Galaxy Digital.
Galaxy is thrilled to partner with Morgan Stanley, the first US bank to offer Wealth Management clients access to bitcoin funds. https://t.co/xT2SYHPOkJ
— Mike Novogratz (@novogratz) March 17, 2021
The people familiar with the matter also told CNBC that the latest move comes after strong client demand. The bank’s wealth management clients have been asking for ways to to gain exposure to cryptocurrencies.
Possible Effect of Bitcoin Funds Access Provided by Morgan Stanley
Bitcoin’s phenomenal price rally this year has forced traditional banking institutions to get closer to it. Massive institutional money and corporate participation has offered additional fuel.
Thus, for now, the bank has considered offering its wealthier clients access to Bitcoin. Morgan Stanley noted that the facility is suitable for investors with “an aggressive risk tolerance” with at least $2 million in assets. Also, it will serve investors looking at Bitcoin-linked public-traded products rather than direct exposure. The ones states:
“For those qualified investors ready to gain exposure, we suggest starting with publicly traded products – preferably ones that are multiasset and potentially accessing the growth opportunities through a venture capital/private equity investment in the blockchain ecosystem”.
NYDIG CEO Says Major Bitcoin Investments Coming Ahead
Appearing recently on ‘On The Brink’ podcast, NYDIG’s CEO, Robby Gutmann said that we are on the verge of Bitcoin mass adoption by big companies. Gutmann also said that there will be some major announcements coming from NYDIG’s strategic partners in coming weeks.
“I know starting more or less next week, you’re going to see an absolute drumbeat of pretty game-changing milestones from some of these firms. [The announcements] are going to mark progressively new points in Bitcoin adoption, Bitcoin availability, Bitcoin products and services within the existing traditional financial landscape,” he added.
Earlier this month, NYDIG raised $200 million in a growth capital round. Top players like MassMutual, Morgan Stanley, Soros Fund Management, and other participated. NYDIG has also filed for a Bitcoin ETF products with the US Securities and Exchange Commission (SEC).