- The bank has allowed ETF buying since the start, but only if the customer approaches them directly.
- Morgan Stanley could become the first among its peers to allow Bitcoin ETF solicitation.
- The move could push substantial inflow into the ETFs.
Morgan Stanley (MS) is looking to allow its 15,000 brokers to recommend bitcoin (BTC) exchange-traded funds (ETF) to their customers, according to a report from AdvisorHub.
The Wall Street giant opened up bitcoin ETF purchases after they had been approved earlier this year. However, this was done only on an unsolicited basis. The bank is now looking to let its brokers pitch bitcoin ETFs directly to its customers, the report added.
The move is a testament to the demand for spot ETFs and could bring additional inflows into the funds. The ETFs allow the customers to reap the benefits of investing in the oldest cryptocurrency without direct exposure.
“We’re going to make sure that we’re very careful about it...we are going to make sure everybody has access to it. We just want to do it in a controlled way,” AdvisorHub reported, citing a Morgan Stanley executive.
The Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs in January. The firms that got the approval include investment behemoths BlackRock (BK), Fidelity, Invesco (IVZ) and others.
The approval brought massive inflows into the funds and, subsequently, bitcoin. However, the inflows have been dwindling for some time, with BlackRock registering zero daily inflow for its ETF for the first time ever on Wednesday, according to Farside.
Morgan Stanley allowing its brokers to recommend bitcoin ETFs could bring back momentum into the funds.
Morgan Stanley did not immediately respond to CoinDesk's request for comment.