Morgan Stanley plans to include the crypto exchange-traded funds on its brokerage platforms in a step that could significantly boost inflows into the ETFs.
The spot Bitcoin ETFs’ popularity has increased in just a month of their approval. Their inflows have consistently increased, aiding the crypto market to rally in February. The spot Bitcoin ETFs saw their daily trading volumes hit over $7 billion recently, almost doubling within a week. As a result, a leading investment firm, Morgan Stanley, is also reflecting on including the crypto exchange-traded funds on its platform.
Morgan Stanley revealed their plans in a recent regulatory filing stating details about crypto. The filing was regarding Morgan Stanley’s new fund, called the Morgan Stanley Europe Opportunities Fund.
Regarding the fund’s exposure to crypto, the firm said, “The Fund may obtain investment exposure to Bitcoin indirectly through investing in Bitcoin ETFs. The amount of the fund’s investment in Bitcoin ETFs will be subject to certain limits at the time of investment.”
Moreover, inflows into crypto investment products could steeply rise if leading firms like Morgan Stanley endorse them. At the same time, registered investment advisors (RIAs) and broker-dealers of companies like Morgan Stanley may also contribute to it.
A few days ago, an RIA called the Carlson Group also allowed four spot Bitcoin ETFs for its network. The move has taken a positive turn in the crypto community, as it could also influence RIAs to make similar changes.
The spot Bitcoin ETFs, offering new investors an indirect exposure to the crypto market, has opened new opportunities. Hence, the crypto market has also rallied extensively recently. Meanwhile, Morgan Stanley advocated for crypto adoption earlier when one of its senior officials spoke about its benefits.
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