According to AdvisorHub , since the Bitcoin spot ETF was approved for listing in January this year, Morgan Stanley, like many peers, has been offering this product, but it is limited to non-active promotion, and customers must proactively ask advisors about investment matters. Allowing consultants to recommend such products would increase demand for the products, but would also expose companies to additional legal liability.
However, according to two executives familiar with the matter, Morgan Stanley is planning to allow its approximately 15,000 brokers to promote clients to buy Bitcoin spot ETFs. One of the executives familiar with the matter said that Morgan Stanley is trying to build protections for the active promotion model. Measures, including risk tolerance requirements, imposing limits on allocations and trading frequency.
An informed executive said that Morgan Stanley will be very cautious about this and hopes to allow every customer to receive Bitcoin spot ETFs in a controlled manner; however, the exact time of the change was not disclosed.
However, Morgan Stanley executives also stated that although customers have shown strong interest in Bitcoin spot ETFs, it is still only a speculative purchase, and most customers only invest a little money.
Marketing status of other banks
Other peers have adopted similar cautious strategies. Bank of America’s Merrill Lynch and Wells Fargo launched related products shortly after the Bitcoin spot ETF was approved, but they were limited to non-active solicitation of purchases and, in some cases, only Only ultra-rich customers, such as Merrill Lynch, require that customers have at least US$10 million or more in assets before they can purchase Bitcoin spot ETFs.
LPL Financial, the largest independent broker in the United States, said in February that it planned to take three months to determine which Bitcoin funds can be offered to customers. Cetera Financial Group, an independent broker-dealer, approved in March that it would provide funds to customers. 4 Bitcoin spot ETFs.
Some institutions still refuse to offer such products
However, not all traditional financial institutions are actively rushing into Bitcoin-related products. Raymond James Financial does not provide cryptocurrency products on its trading platform, and Vanguard also refuses to provide cryptocurrency products, saying that cryptocurrency is more like speculation. Rather than investment, it was the fundamental reason for the company's decision not to provide related products.
Extended reading: Wall Street’s revolt》Vanguard bans customers from trading Bitcoin spot ETF: BTC is an immature asset with no intrinsic economic value
