After Morgan Stanley’s move, Wells Fargo is ready to launch Bitcoin ETFs. This is to address the increasing demand from clients for cryptocurrency investment products. Morgan Stanley insiders also recommend a gradual approach, like the one they adopted, where they now allow their advisors to consider Bitcoin ETFs.
Wells Fargo Plans Bitcoin ETF Launch
Morgan Stanley has made significant progress by introducing Bitcoin ETFs into its brokerage services. However, these funds are not yet in the advisory account. A senior executive disclosed that the firm’s client assets are distributed between advisory and brokerage accounts at 40% to 60%. The above notwithstanding, this adaptation highlights that cryptocurrencies are gradually being incorporated into conventional investment strategies.
UBS and Wells Fargo are also expected to be coming up with similar products in the near future. This is probably similar to what Morgan Stanley is going for, where they will go for regulated spot Bitcoin ETFs. The tension rises as more conventional financial firms recognize the possibility and their clients’ interest in accessing cryptocurrencies.
Former SEC Chief Criticizes Crypto ETF Endorsements
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However, some industry players have negative sentiments regarding the possible dangers of investing in cryptocurrencies. John Reed Stark, a previous SEC Enforcement Chief, expressed his thoughts about the move and mentioned the threats of credential risks for financial planners promoting such high-risk assets. He pointed to new rules from the CFP Board that support the concern about such endorsements, of course.
On the other hand, BlackRock and Fidelity have recently launched SEC-compliant Bitcoin ETFs, indicating a high demand from retail and institutional clients. These include BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, which is designed to provide more secure access to cryptocurrency. Importantly, BlackRock’s Ethereum ETF also sees high inflows, even in the context of overall market volatility.
Cryptocurrency is gradually becoming more accepted in mainstream finance, with firms such as Millennium Management, Capula Management, and Schonfeld Strategic Advisors actively participating in new cryptocurrency ETFs. This trend is a turning point in the attitude of classic investment organizations towards digital assets and their adaptation to existing investment plans.
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Also Read: New Jersey Mayor: City Pension Fund to Invest in Bitcoin ETF
