In a development that promises to shake up the cryptocurrency market, financial giant Morgan Stanley is reportedly on the verge of a major announcement: the approval of Bitcoin ETFs on its platform in the next two weeks. This rumor was initially circulated by Andrew, a well-known cryptocurrency commentator at Arch Public (@AP_Abacus) on the X platform (formerly Twitter).
Andrew revealed that multiple internal sources at Morgan Stanley, as well as companies involved with BTC ETFs and related legal entities, have confirmed the imminent approval of these ETFs. He highlighted the significant assets managed by Morgan Stanley, which exceeds US$ 1,5 trillion, highlighting the importance of this movement for the cryptocurrency market.
UPDATE: several sources confirming that @MorganStanley is set to approve # Bitcoin ETF's on their platform in the next two weeks.
– sources are from inside $MS, inside $ BTC ETF firms, and legal insiders adjacent to both.
- @MorganStanley holds more than $1.5T in client assets.— Andrew (@AP_Abacus) March 26, 2024
The news sparked a mix of optimism and skepticism in the financial community, with Bloomberg ETF expert Eric Balchunas questioning the veracity of Andrew's source. In response, Andrew kept his sources confidential, suggesting a private conversation for more details.
Speculation about Morgan Stanley's entry into the world of Bitcoin ETFs is not new. Rumors have been circulating since February that the bank is conducting due diligence to include Bitcoin ETF products in its brokerage offerings. This follows the precedent set by the bank in 2021, when it became the first major US bank to offer its wealthy customers access to BTC funds, through partnerships with Galaxy Digital and NYDIG.
The approval of Bitcoin ETFs by SEC January marked a historic moment for the sector, with the expectation that the availability of these products through major brokerage platforms and Registered Investment Advisor (RIA) networks will further unlock its potential. With the addition of Morgan Stanley to this trend, a significant impact on flows into Bitcoin ETFs is anticipated.
It is not yet known which specific ETFs Morgan Stanley plans to offer, but it is likely that the selection will be strategically aligned with innovation and the interests of its clients. This step by Morgan Stanley highlights the growing acceptance of Bitcoin ETFs in the traditional financial sector, promising to further transform the cryptocurrency investment landscape.
