Morgan Stanley to Offer Clients Exposure to Bitcoin Funds: Report

Two of the funds are from Galaxy Digital and the other is joint effort from FS Investments and NYDIG, according to CNBC.

Mar 17, 2021 at 3:16 p.m. UTC
Updated Sep 14, 2021 at 12:28 p.m. UTC

Morgan Stanley is accelerating its involvement in the cryptocurrency industry.

According to a CNBC report, the $4 trillion wealth management firm is providing high-end clients with access to three funds that provide bitcoin exposure. The report cites an internal memo and unnamed sources with knowledge of the matter.

Morgan Stanley has inched into the crypto markets in recent months, becoming a major shareholder in MicroStrategy, the publicly traded business intelligence firm known for buying billions in bitcoin. Morgan Stanley also joined a $200 million investment in bitcoin firm NYDIG earlier this month.

CNBC reports the latest move is a direct response to Morgan Stanley clients demanding bitcoin exposure.

Two of the funds are from Galaxy Digital and the other is joint effort from FS Investments and NYDIG, according to the report.

That said, the Morgan Stanley offering comes with a handful of restrictions. According to the report:

Investment firms need at least $5 million at the bank to qualify for the new stakes. In either case, the accounts have to be at least 6 months old. And even for those accredited U.S. investors with brokerage accounts and enough assets to qualify, Morgan Stanley is limiting bitcoin investments to as much as 2.5% of their total net worth, said the people.

The funds will likely be open to Morgan Stanley clients as early as next month.

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