Morgan Stanley is considering allowing its 15,000 brokers to pitch Bitcoin ETFs to clients in response to the growing demand for cryptocurrency investments. Currently, the company asks investors to show interest in Bitcoin ETFs before offering them.
The corporation intends to impose certain "guardrails" for these recommended trades, such as risk assessments and limits on how much and how frequently clients can trade. The exact details of the rollout remain unknown.
This method may broaden Morgan Stanley's market but also raises its risk. Bank of America and Wells Fargo take similar procedures, but only for unsolicited transactions, primarily targeting richer clients.
Meanwhile, Vanguard and Raymond James have opted out of the crypto ETF movement, raising worries about their suitability for long-term portfolios. On the other side, companies such as LPL Financial and Cetera Financial Group are either exploring or have begun issuing Bitcoin ETFs with specific investment criteria.
Despite their popularity, Bitcoin ETFs are still considered speculative. "Our clients typically invest modestly," said a Morgan Stanley official.
