Morgan Stanley Considering Spot Bitcoin ETFs for Brokerage Platform: Report

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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February 29, 2024 01:07 EST

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Morgan Stanley is considering adding spot Bitcoin exchange-traded funds (ETFs) to its brokerage platform and is currently in the process of conducting due diligence, according to a CoinDesk report citing two sources familiar with the matter.

There has been increased interest in spot Bitcoin ETFs after the U.S. Securities and Exchange Commission approved almost a dozen products in January.

According to the CoinDesk report, a source said Morgan Stanley, which is among the largest U.S. broker-dealer platforms, has been evaluating offering spot Bitcoin ETFs to clients since the SEC approved the products in January.

Bitcoin ETFs Gain Momentum 

Since then U.S. spot Bitcoin ETFs have seen $7.7 billion in daily trading volume, an all-time high. BlackRock’s IBIT has doubled its personal record on the third consecutive day with $3.3 billion in trading volume. Fidelity’s spot Bitcoin ETF also doubled its previous record with $1.4 billion trading volume on the same day, Bloomberg analyst James Seyffart posted on X.

“$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. (still waiting on $BTCO)” added Seyffart.

BlackRock’s IBIT has crossed $9 billion in assets, posted Seyffart on X.

Wall Street Banks Hungry for Crypto ETFs and ETPs 

It’s no secret that traditional financial institutions are going further down the crypto rabbit hole when it comes to exploring crypto. As reported in 2021, Goldman Sachs, ICAP, JPMorgan, and UBS were all purchasing exchange-traded products (ETP) that offer exposure to cryptocurrency for clients, according to Bloomberg terminal data reviewed by CoinDesk.

Experiencing FOMO?

It seems major banks such as Morgan Stanley are experiencing FOMO and want a slice of the action. There could be a new wave of investment banks entering the arena after witnessing the success BlackRock is experiencing with its Bitcoin product IBIT.

Spot Ethereum ETFs Next?

Following the approval of spot Bitcoin ETFs many investment firms have filed applications with the SEC to launch spot Ethereum ETFs as demand for such products continues to heat up.

So far, BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, as well as Cathy Wood’s Ark Invests and 21Shares, have all submitted applications for a spot Ethereum ETF.