Wealth management firm Morgan Stanley has decided to provide its clients with access to three funds that “enable ownership of bitcoin”, CNBC reported on 17 March.
According to the publication, the investment bank circulated an internal memo on Wednesday, telling its financial advisors it will be providing high-end clients with access to three Bitcoin funds. People with “direct knowledge of the matter” said two of the funds in question will be from Galaxy Digital, while the other is a joint effort from FS Investments and NYDIG.
Morgan Stanley, however, has put some limitations to its new offering. It will allow only its wealthiest clients to have access to Bitcoin, with accredited investors needing to hold a capital of at least $2 million at the investment bank. Investment firms, on the other hand, will need at least $5 million at the bank to qualify for the offering, with their accounts being at least 6 months old. Morgan Stanley’s new product will also limit Bitcoin investments to only 2.5% of each client’s total net worth.
Morgan Stanley decided to make the move after its clients started demanding exposure to the cryptocurrency asset. The unnamed sources further said the new offering is likely to be launched next month, after the bank’s financial advisors have completed training courses connected to the digital asset.
Morgan Stanley’s move might have also been sparked by the numerous companies who have started to invest in the number one cryptocurrency. MicroStrategy, for example, has already purchased more than 91,000 BTC (worth around $4 billion), while electric car manufacturer Tesla invested $1.5 billion of its fund in the digital asset last month.