Morgan Stanley is the first major US bank to offer high net worth individuals (HNIs) access to bitcoin funds
The investment bank Morgan Stanley will offer its wealthy clients access to bitcoin funds. This makes it the first leading bank in the US to take such a step. Morgan Stanley currently manages over $ 4 trillion for its clients, and Bitcoin (BTC) entry could be huge for the crypto market.
Sources close to the matter have told CNBC that Morgan Stanley told its financial advisors in an internal memo yesterday that it was initiating access to three funds and granting customers ownership of Bitcoin.
According to Morgan Stanley, the move to offer access to Bitcoin funds is a result of increasing demand from its customers. Bitcoin’s rally last year caught Wall Street’s attention, and several wealthy investors are calling for exposure to the cryptocurrency.
There would be certain restrictions on Bitcoin funds. Morgan Stanley would only give access to the funds to wealthy clients. To qualify, an investor must have at least $ 2 million in assets, while the minimum requirement for investment firms is at least $ 5 million. In both cases, the accounts must be at least six months old.
Morgan Stanley would also limit Bitcoin investments to around 2.5% of an investor’s total net worth, the sources added. This is to ensure that the wealthy management clients are not exposed to the risks of Bitcoin investment.
Morgan Stanley is partnering with Galaxy Digital to offer the Bitcoin funds
The investment bank will partner with Galaxy Digital, FS Investments and bitcoin company NYDIG to provide the services. Mike Novogratz, CEO of Galaxy Digital, was excited about this latest development and tweeted about it yesterday.
He said, “Galaxy is excited to partner with Morgan Stanley, the first US bank to bring bitcoin funds to wealth management clients.”
Galaxy Digital will offer its clients access to two funds, while FS Investments and NYDIG as partners will offer the third. The Galaxy Institutional Bitcoin Fund LP requires a minimum investment of $ 5 million while the other two (the Galaxy Bitcoin Fund LP and the FS NYDIG Select Fund) have a minimum requirement of $ 25,000.
Morgan Stanley would allow clients to begin investing by next month once the financial advisors have completed their training on the new funds.