Morgan Stanley is the first major bank in the United States to offer its customers direct purchase of shares in funds that allow them to take a position in bitcoin.
This was revealed by CNBC, citing an internal memo from the bank to its financial advisers.
In the memo, Morgan Stanley explicitly tells its financial advisers that it will soon start accessing three bitcoin investment funds, two of which come from Galaxy Digital, Mike Novogratz’s cryptocurrency company, while the third is from FS Investments and NYDIG.
New institutional investments in Bitcoin
However, for now, the bank will only allow its wealthiest customers to have access to these funds, that is, those with at least $ 2 million in assets on deposit, because it considers bitcoin an asset suitable only for people with “a aggressive risk tolerance ”. It will also allow bitcoin investments of up to 2.5% of the total net worth of individual customers.
For example, Galaxy Bitcoin Fund LP and FS NYDIG Select Fund require a minimum investment of $ 25,000, while Galaxy Institutional Bitcoin Fund LP requires a minimum of $ 5 million.
Morgan Stanley is a large-scale asset management giant, with $ 4 trillion in AUM, and this could be a very significant step towards the acceptance of bitcoin as an asset class. According to CNBC, the decision was taken by the bank after its own customers requested access to bitcoin.
The bank’s customers are likely to start making these types of investments as early as next month, after financial advisers complete training courses related to these new offerings.
The famous influencer of the crypto universe, Anthony Pompliano, commented saying:
BREAKING: Morgan Stanley, the largest US brokerage, is embracing Bitcoin.
They have released a report “The Case for Cryptocurrency as an investable asset class in a diversified portfolio.”
Bitcoin is inevitable.
– Pomp 🌪 (@APompliano) March 17, 2021
“URGENT: Morgan Stanley, the largest bank in the United States, is adopting Bitcoin.
They released a report “The Case for Cryptocurrency as a class of investable assets in a diversified portfolio.”
Bitcoin is inevitable ”.