World-renowned asset management firm Morgan Stanley is showing an increased interest in the world’s foremost cryptocurrency – Bitcoin. According to reports, the investment bank will provide its wealthy clients with access to Bitcoin funds.
Over the last couple of months, Morgan Stanley has shown a steadily increasing interest in the crypto space. Providing its clients with access to Bitcoin funds only further cements the notion of its interest in cryptocurrency. According to reports by CNBC, clients will be provided with access to three different funds.
Two of the funds will come from Mike Novogratz’s Galaxy Digital while the third is from a partnership between Bitcoin firm NYDIG and FS Investments.
Binance also reported this announcement on Twitter.
— Binance (@binance) March 18, 2021
Morgan Stanley Bitcoin Fund for the Wealthy
For now, only Morgan Stanley’s wealthy clients will have access to the fund. According to the investment bank, this is due to the volatile nature of the asset. And so, it would only be available to people with “an aggressive risk tolerance.” According to the bank, individual clients with a minimum of $2 million in assets fall under this category. For investment firms, they need a minimum of $5 million at the bank to have access to the funds.
Also, clients need to have held their accounts for at least six months to be able to qualify for the funds.
Interestingly, clients who have all the above-listed requirements can only invest a maximum of 2.5% of their total net worth. The investment will only be possible starting next month and after the bank’s financial advisors complete compulsory training in the new offerings.
Morgan Stanley’s Interest in Bitcoin
Morgan Stanley is the first major U.S. bank to offer its clients access to Bitcoin funds. Other top investment firms like JPMorgan Chase, Goldman Sachs, and Bank of America do not currently offer any form of Bitcoin investments directly. Morgan Stanley has decided to change this narrative. According to the investment bank, this move was brought on by the popular demand of its clients.
Prior to this announcement, the investment bank has shown an increasing interest in the crypto space. It became a shareholder of MicroStrategy, the first Nasdaq-listed company to buy Bitcoin. Early this month, the bank also joined a $200 million investment in Bitcoin company NYDIG.
Providing access to Bitcoin funds by a top institution like Morgan Stanley is sure to drive adoption for Bitcoin. We also expect to see more acknowledgment and acceptance of the crypto as a reliable asset class.
At the time of publication, BTC was trading at $57,646.11, with a market cap of $1,071,662,367,337 and a 24-hour trading volume of $57,189,603,558.
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Featured image courtesy of Wikimedia Commons/Alex Proimos.