Morgan Stanley May Add Spot Bitcoin ETFs to Its Platform

Conglomerate Morgan Stanley is considering trading shares of spot Bitcoin ETFs on its brokerage platform. CoinDesk reports this with reference to its sources.

The financial holding is conducting a comprehensive audit, but it is too early to talk about specific steps, the publication noted. It is noteworthy that an application in form N1-A from an organization for its product Europe Opportunity Fund can be considered an indirect confirmation of this fact.

This is an investment fund focused on Europe. However, according to the papers, he may invest in spot Bitcoin ETFs through a subsidiary in the Cayman Islands.

The share of these shares should not exceed 25% of total assets under management (AUM). In a comment to The Block, Bloomberg Intelligence analyst Eric Balchunas said that the bank is “playing defensively”:

“They would rather not make mistakes. Making these investments is difficult because Europe does not have the same opportunities as the United States. Maybe it's just an attempt to gain a little advantage."

According to the expert, he will be surprised if the actual share of spot Bitcoin ETFs in the fund structure exceeds 2%.

Let us remind you that the US Securities and Exchange Commission (SEC) approved the launch of these funds on January 10, 2024.

Since February 26, activity in this sector has increased significantly. On Wednesday, February 28 alone, trading volume approached $6 billion. Balchunas noted that this is natural demand, since large market makers do not have access to the market.