American multinational investment bank Morgan Stanley could potentially allow 15,000 brokers to solicit client purchases for Bitcoin exchange-traded funds, according to a recent report by AdvisorHub, which cites two anonymous senior executives.
So far, the bank has offered them only on an unsolicited basis, which essentially means that advisors do not explicitly recommend investing in Bitcoin ETF.
The rumored policy change, as the report suggests, could substantially boost demand for red-hot Bitcoin ETFs.
Alex DovbnyaOne of the executives cited by AdvisorHub says that the banking giant is cautious about allowing thousands of its brokers to solicit client purchases for Bitcoin ETFs, which is why they are working on setting up some guardrails such as allocation limits. The brokers will also have to take into account such factors as risk tolerance. Morgan Stanley wants clients to invest in these products in a "controlled way."
Other major players, such as Wells Fargo, remain mum about potential plans to introduce solicited purchases.
Meanwhile, there are some troubling signs that demand for Bitcoin ETFs could be waning.
As reported by U.Today, Bitcoin ETFs recorded $120 million worth of outflows on Wednesday.
The price of Bitcoin, the top cryptocurrency, has now slipped back below the $64,000 level.
Earlier this year, James Gorman, the former CEO of Morgan Stanley, said that he does not view Bitcoin as a "core investment" even though he does not view the largest cryptocurrency as a fad. Gorman views the world's largest cryptocurrency as a purely speculative asset.
Yuri Molchan
Vladislav Sopov
Dan Burgin