A limited list of clients will have access to Bitcoin funds. Morgan Stanley won’t allow investors to put more than 2.5% of their total net worth in crypto.
There is a new milestone for the digital currency market. The US investment bank giant Morgan Stanley announced that it would start bringing granted access to Bitcoin funds.
According to a CNBC report, Morgan Stanley offers its wealth management clients access to three funds that enable bitcoin ownership. A person familiar recently revealed the news to that medium.
Morgan Stanley manages about $ 4 trillion in client assets. Meanwhile, the Wall Street giant’s wealth management unit has 16,000 advisers who count about $2.3 trillion in client assets.
Through a memorandum on March 17, Morgan Stanley stated to its financial advisers about the new launch. Its wealthy clients will gain access to at least two funds from Galaxy Digital, while the third is a joint effort of asset manager FS Investments and bitcoin company NYDIG.
The initiative shows the significant steps regarding Bitcoin adoption by Wall Street giants. This action would be the first time a large US bank has opened doors to its client’s access to manage funds of this type.
Exposure to Bitcoin and Benefits for Wealthiest Customers
The US bank’s recent decision comes due to increasing demand from customers; The source told CNBC. However, it will be available just for a limited list of clients with high amounts of money under bank management.
“Bitcoin’s rally in the last year has put Wall Street companies under pressure to consider getting involved in the nascent asset class,” the outlet wrote.
Morgan Stanley noted that access to the funds would be available to clients with at least $ 2 million in assets under the firm’s control. Besides, Morgan Stanley also noted that the company considered it suitable for people that couldn’t fear risks.
Investment firms usually need at least $ 5 million in the bank to qualify for the new holdings. The accounts must have an active operation of at least six months old. The bank is even daring to limit qualified users, who will only invest up to 2.5% of their total net worth in Bitcoin.
Despite the limitations, this is a very relevant event for the digital crypto world. It opens the possibility for a new group of wealthy clients to set transactions with the leading cryptocurrency. This event would lead to a significant further boost for bitcoin shortly.
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The CEO addressed the matter and acknowledged the bad publicity it had generated. The CEO also pointed out that Robinhood could take a few months to recover from the consequences.
By: Jenson Nuñez
