Morgan Stanley Expands Crypto Access for Clients
Morgan Stanley will let all its wealth management clients invest in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). This change starts on October 15, according to a CNBC report.
Before this, only clients with at least $1.5 million in taxable brokerage accounts could access crypto investments. Now, all clients, including those with retirement accounts, can invest in crypto funds through the bank’s financial advisors.
Crypto Investment Options and Monitoring
Currently, Morgan Stanley advisors can offer Bitcoin funds from BlackRock and Fidelity. The bank is also watching the market for other crypto products to add. Clients can request to invest in any listed crypto exchange-traded funds (ETFs).
Morgan Stanley will use an automated system to monitor clients’ crypto exposure. This helps prevent clients from taking on too much risk in the volatile crypto market.
Growing Interest in Crypto Among Top Banks
In September, Morgan Stanley announced it would enable trading of Bitcoin, Ethereum, and Solana (SOL) on its E*Trade platform. This is done in partnership with crypto infrastructure provider Zerohash.
The bank’s global investment committee recommends an initial crypto allocation of up to 4%, depending on investors’ goals. They see cryptocurrencies as an important asset class for portfolio diversification.
Other major banks like JPMorgan and Charles Schwab are also expanding crypto services. JPMorgan plans to allow clients to use crypto assets as collateral for loans, starting with BlackRock’s iShares Bitcoin Trust (IBIT).
