The race among investment banks to secure the coveted title of being the first to introduce spot Bitcoin exchange-traded funds (ETFs) in the United States has reached a fever pitch, with Morgan Stanley and UBS emerging as frontrunners in this fiercely contested battle.
As reported by crypto insider Andrew AP Abacus, both financial powerhouses are poised to unveil their respective Bitcoin ETFs as early as next week. This eagerly anticipated development marks a significant milestone in the evolution of cryptocurrency investment vehicles, as it signals the growing mainstream acceptance and adoption of digital assets within the traditional financial landscape.
The introduction of Bitcoin ETFs by Morgan Stanley and UBS is expected to unlock a myriad of opportunities for institutional and retail investors alike, providing them with convenient access to the burgeoning cryptocurrency market through familiar and regulated investment channels. Moreover, the launch of these ETFs is likely to further legitimize Bitcoin as a legitimate asset class and pave the way for broader acceptance and integration of digital currencies into traditional investment portfolios.
Amidst escalating competition and heightened anticipation, all eyes are now on Morgan Stanley and UBS as they vie to make history by becoming the inaugural bank to fully approve a Bitcoin ETF in the United States, marking a watershed moment in the ongoing convergence of traditional finance and the burgeoning world of cryptocurrencies.
Morgan Stanley and UBS compete for Bitcoin ETF approval, heightening their rivalry.
Morgan Stanley and UBS, with assets under management of $1.26 trillion and $1.1 trillion respectively, rank among the world’s largest wealth managers. Both institutions are striving to authorize Bitcoin ETF trading on their platforms, signifying a crucial step in Bitcoin’s institutional adoption. According to reports from crypto enthusiast Andrew (AP_Abacus) on X, Morgan Stanley is racing to surpass UBS, aiming to be the inaugural wirehouse to grant full approval for the Bitcoin ETF.
UPDATE: several notes from @MorganStanley execs this AM; salty about @UBS post yesterday. They want to be the first wirehouse to fully approve the #Bitcoin ETF's.
– @MorganStanley may announce a few days before @UBS.
– interesting that global banks are talking about $BTC ETF's…— Andrew (@AP_Abacus) April 3, 2024
According to Andrew, internal documents from Morgan Stanley suggest that the bank might unveil its foray into Bitcoin ETFs shortly before implementing them. This revelation has sparked conversations among global banks, viewing the introduction of Bitcoin ETFs as a competitive race.
However, Eric Balchunas, an ETF expert at Bloomberg contributing to Andrew’s X thread, revealed that neither Morgan Stanley nor UBS has added Bitcoin ETFs as of yet, citing reliable sources.
Balchunas indicated that both banks are currently engaged in a compliance standoff, each waiting for the other to take the initial step, which would then pave the way for the other to follow suit. This scenario could potentially result in both institutions simultaneously adopting Bitcoin ETFs.
Andrew’s recent update follows his earlier report stating that UBS plans to incorporate Bitcoin ETFs into its platform between April 8 and April 12.
UPDATE: sources saying that #Bitcoin ETF’s will be added to @UBS platform next week and widely available.
– removal from PWM silo.
– removal of ‘unsolicited’ order restriction.
– @UBS manages $3.5T in global wealth.— Andrew (@AP_Abacus) April 2, 2024
This conjecture regarding a potential rivalry between Morgan Stanley and UBS arises following previous reports hinting at the imminent approval of Bitcoin ETFs by the former. Andrew had previously indicated that Morgan Stanley was poised to authorize Bitcoin ETFs within the upcoming fortnight.
Morgan Stanley Explores Bitcoin ETFs for Brokerage Platform
Morgan Stanley is presently engaged in comprehensive due diligence to assess the feasibility of integrating spot Bitcoin ETF products into its brokerage platform, as indicated by sources with intimate knowledge of the situation. The bank has been actively considering the provision of these products to its clientele ever since the Securities and Exchange Commission (SEC) granted approval for their introduction in the United States back in January.
The debut of spot Bitcoin ETFs in the U.S. on January 11 marked a significant milestone following years of concerted efforts to bring such products to market. However, customers of major banks such as UBS and Citi encountered challenges in accessing spot Bitcoin ETFs, with each institution citing different reasons for not listing these investment products.
Despite significant investments already made in Bitcoin ETFs, the full influx of investment may not materialize until these products are made available through prominent registered investment advisor (RIA) networks and broker-dealer platforms associated with esteemed firms like Merrill Lynch, Morgan Stanley, and Wells Fargo, among others.
For example, UBS highlighted that spot Bitcoin ETFs could only be offered in brokerage accounts and were deemed suitable solely for “aggressive investors.” The bank also underscored the importance of issuers demonstrating their capability to effectively manage the product, particularly during periods of market volatility.
Currently, there are ten spot Bitcoin ETFs traded in the U.S., with the most substantial assets held by products such as Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. However, the specific ETFs being considered by Morgan Stanley for offering to its clients remain undisclosed.
The potential approval of Bitcoin ETFs by major wealth management firms like Morgan Stanley could signify a pivotal moment for the cryptocurrency market. Should approval be granted, it would signal an increasing confidence in Bitcoin’s long-term viability while also introducing millions of new investors to the market.
Furthermore, positioning themselves at the forefront of Bitcoin ETFs could attract billions in new client assets for these banks, reflecting a growing belief in Bitcoin’s future among the global banking elite.
more on: Morgan Stanley Exploring Inclusion of Spot Bitcoin ETFs on Brokerage Platform
