Morgan Stanley Bitcoin ETF? Insiders Stir the Pot

• Insiders report that global banks are racing to integrate Bitcoin ETFs into their offerings. 
• Morgan Stanley and UBS are allegedly the front runners in this race. 
• Bloomberg’s ETF expert also chimes in with clarity on the situation.

Bitcoin ETFs’ triumphant journey over the past quarter is shaping up to be a convincing case study for sidelined institutions as they observe the newborn nine reel in billions in assets under management and surpass the likes of Silver ETFs in its first three months of trading. 

In a bid to stake their claim in the rapidly growing market, investment banks such as Morgan Stanley are rumored to be engaged in a heated race with their rivals to become the first to offer Bitcoin ETFs. 

Morgan Stanley and Global Banks Race to Offer Bitcoin ETFs

Crypto enthusiast AP_Abacus, also known as Andrew, shared an update that major banks like Morgan Stanley and Union Bank of Switzerland (UBS) are in a race to become the first wirehouse to integrate Bitcoin ETFs into their offerings.

Citing internal Morgan Stanley notes, Andrew suggested that the bank could “announce a few days before” its foray into the burgeoning Bitcoin ETF market. He further noted that global banks have been actively discussing incorporating Bitcoin ETFs into their products. 

The crypto enthusiast predicts global banks will announce adding Bitcoin ETFs to their platforms between April 8 and 12 next week . However, Bloomberg ETF expert Eric Balchunas has cast doubt on the update, citing a ‘solid source.’ 

Eric Balchunas Dispels Rumors of Morgan Stanley Offering Bitcoin ETFs

After Andrew’s update stirred the pot in the crypto community, Balchunas clarified that neither Morgan Stanley nor UBS had yet added the Bitcoin ETFs to their offerings. According to the Bloomberg expert, investment banks were currently in a holding pattern, engaging in a “compliance game of chicken,” each waiting for the other to make a move.

Balchunas speculated that if the banks were to enter the Bitcoin ETF space, they would likely do so simultaneously. However, he expressed uncertainty regarding the timeline for such a development.

In response to Balchunas’ dismissal, Andrew highlighted that UBS had allegedly approved Bitcoin ETFs for Private Wealth Management (PWM) accounts valued at over $10 million. However, this approval comes with conditions and has been labeled “unsolicited.”

On the Flipside

• While global banks are allegedly racing to offer Bitcoin ETFs, asset fund manager Vanguard remains unfazed by the hype and has announced no interest in incorporating the investment vehicle.
• At press time, Bitcoin ETFs held 4.25% of the total BTC supply. 

Why This Matters

Bitcoin ETFs have sent shockwaves through the industry after gaining approval from the SEC in January, sparking increased crypto adoption and contributing to Bitcoin’s new all-time high. Major banks potentially joining the fray signals a positive development for the space, potentially accelerating adoption even further.

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