Morgan Stanley is reportedly exploring the possibility of incorporating spot Bitcoin exchange-traded funds (ETFs) into its brokerage platform, with ongoing due diligence being conducted, as per a CoinDesk report citing two informed sources.
Following the approval of nearly a dozen products by the U.S. Securities and Exchange Commission in January, there has been a surge in interest surrounding spot Bitcoin ETFs.
The report from CoinDesk indicates that a source disclosed Morgan Stanley’s assessment of offering spot Bitcoin ETFs to its clients, particularly since the SEC’s approval of such products in January.
Bitcoin ETFs Gain Momentum
Since then, U.S. spot Bitcoin ETFs have experienced a surge in daily trading volume, reaching an all-time high of $7.7 billion. BlackRock’s IBIT has notably doubled its previous personal record for the third consecutive day, achieving a staggering $3.3 billion in trading volume. Fidelity’s spot Bitcoin ETF also achieved a notable milestone by doubling its previous trading volume record to $1.4 billion on the same day, as reported by Bloomberg analyst James Seyffart on X.
“$IBIT alone saw a record inflow of $612 million. In total, the group recorded a net inflow of $673 million, surpassing the day 1 record of $655 million. (still awaiting $BTCO),” Seyffart added.
BlackRock’s IBIT has now surpassed $9 billion in assets under management, Seyffart further noted on X.
Wall Street Banks Hungry for Crypto ETFs and ETPs
It’s evident that traditional financial institutions are delving deeper into the realm of cryptocurrency exploration. As highlighted in reports from 2021, entities like Goldman Sachs, ICAP, JPMorgan, and UBS were actively acquiring exchange-traded products (ETPs) providing exposure to cryptocurrencies for their clients, based on data reviewed from the Bloomberg terminal by CoinDesk.
Experiencing FOMO?
Major banks like Morgan Stanley appear to be succumbing to FOMO (fear of missing out) and are eager to partake in the burgeoning crypto market. The success observed by BlackRock with its Bitcoin product IBIT may be prompting a new wave of investment banks to consider entering the arena.
Spot Ethereum ETFs Next?
In the wake of the approval of spot Bitcoin ETFs, numerous investment firms are now seeking to capitalize on the growing demand by filing applications with the SEC to launch spot Ethereum ETFs.
Among those leading the charge are BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy Digital, as well as Cathy Wood’s Ark Invest and 21Shares, all of whom have submitted applications for spot Ethereum ETFs.
