Morgan Stanley to Start Orange-Pilling Customers as Soon as Next Week

Morgan Stanley plans to start recommending Bitcoin ETFs to customers soon.

Bitcoin (BTC) has had a great year, with its price increasing by more than double and reaching new all-time highs of around $74,000. A key contributor to this rise has been the success of spot Bitcoin ETFs, which were approved in January 2024.

In just eight months, these products have already raked in nearly $18 billion in net inflows, breaking multiple records along the way. However, they may have yet to scratch the surface.

While banks have been wary of the potential financial risks associated with the asset and have not yet committed to pushing Bitcoin ETFs to their customers, this status quo looks set to change soon.

Morgan Stanley, a bank with $1.5 trillion in assets under management (AuM), is preparing to make a bold move by offering these products to its customers.

Morgan Stanley To Start Orange-Pilling Customers as Soon as Next Week

According to CNBC, which cited persons familiar with the matter on Friday, August 2, Morgan Stanley plans to start recommending Bitcoin ETFs to customers soon.

In response to customer demand, the investment bank will allow advisors to start soliciting some clients to purchase shares of spot Bitcoin ETF offerings from BlackRock and Fidelity. This marks a shift from its policy of offering these products to customers only on request.

For a start, Morgan Stanley advisors would only be able to solicit Bitcoin ETF investments from clients with net worths of at least $1.5 million, who have a high-risk tolerance and are willing to make speculative investments. The investment bank will also not offer the ETFs to retirement accounts.

In addition to these restrictions, the bank also intends to monitor clients’ portfolios to make sure that they are not overexposed to the asset. The sources, however, did not specify what would constitute excessive exposure.

Morgan Stanley’s move is considered significantly bullish by crypto investors as it is likely to drive even more demand for Bitcoin through ETFs.

Meanwhile, the investment bank’s increased commitment to Bitcoin has been rumored for months.

A Move Months in the Making

In April 2024, it was reported that Morgan Stanley was mulling the shift to a solicited model for spot Bitcoin ETFs and establishing the required guardrails.

At the time of writing, Bitcoin’s price has yet to show any reaction to the investment bank’s recent move, trading flat at around $6