Despite having fallen from its all-time high of $61k, this is yet another solid development for Bitcoin’s future. Morgan Stanley became the first largest US bank to give its clients the options to invest in Bitcoin funds. This move by the bank, along with the comments of Visa’s CEO, had a positive impact on the price of Bitcoin. It rose by 6% on 17th March taking other altcoins along with it. Presently, Bitcoin is trading at around $59,000 and has almost closed its gap with an all-time high once again.
Morgan Stanley entering the Bitcoin market
Morgan Stanley is one of the largest in the US, and it entering the Bitcoin market is going to be very beneficial. The bank announced that it would be launching access to three Bitcoin investment funds for its clients. This was internal news from the company as the information was passed on via an internal memo to the financial advisors of the company.
Finally, Bitcoin is getting treated as an asset class; it always was. And I am sure the demand for Bitcoin funds will be high, but not everyone will have access to these funds. Well, due to the volatile nature of Bitcoin, Morgan Stanley is allowing individuals with at least $5 million at the bank to be eligible as an investor. At the same time, accounts that are 6 months or older will only be accepted for investing in the Bitcoin funds.
Morgan Stanley very well knows that no matter how good Bitcoin is as an investment, its future is uncertain. And this is why even for the wealthier clients, the bank is limiting the investments to 2.5% of their net-worth. This is to make sure that even if something goes catastrophically wrong, only a part of their wealth is lost.
The Bitcoin funds that are available for the wealthy clients at Morgan Stanley are from Galaxy Digital and a Bitcoin company NYDIG. The former is a cryptocurrency firm founded by Mike Novogratz. Both of them have a minimum investment amount and have no upper limit. For the NYDIG fund, the minimum amount is $25,000, and it’s $5 million for the Galaxy Institutional funds. The investments have not begun yet and are expected to commence as early as next month. This will be once the bank finance advisors complete the training courses related to the investments.
Very soon, we could see other banks like Goldman Sachs, JPMorgan Chase and other big names allow Bitcoin investment options to their clients. And as banks follow suit, Bitcoin becoming “extremely mainstream” will become more of a reality.
What are your thoughts on Morgan Stanley bank allowing Bitcoin investment options to its clients? And how good do you think the response will be from the clients? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.