Vocal Bitcoin opponent Peter Schiff believes he has an explanation as to why the Morgan Stanley banking giant offers exposure to BTC and other digital assets to only a tiny percentage of its clients.
Morgan Stanley now offers exposure to Bitcoin
One of the world's largest banks now allows its wealthy customers to access Bitcoin via three BTC funds. A company must have a minimum of $5 million in its bank account and has to be at least half a year old.
Two of the trusts are owned by Galaxy Digital Capital Management, and one belongs to NYDIG – a Bitcoin subsidiary of Stone Ridge – and FS Investments.
However, they can only allocate 2.5 percent of their net worth in the world's flagship cryptocurrency. New investors have to put a minimum of $5 million into the institutional trust run by Galaxy Digital and at least $25,000 into the Galaxy Bitcoin Fund or FS NYDIG Select Fund.
The maximum figure of 2.5 percent of the net worth that is allowed to be invested restricts the number of investors a great deal.
Peter Schiff opines on Morgan Stanley's restriction
Rigorous Bitcoin hater Peter Schiff has taken to Twitter to share his view on why the major global bank has restricted Bitcoin investment to only 2.5 percent of customers' net worth.
Schiff believes that Morgan Stanley realized how risky and volatile Bitcoin investment is and, thus, wants to limit legal liability from investors who may lose their money on this.
Peter Schiff is a harsh Bitcoin critic who is into gold, even though Bitcoin has been demonstrating a skyrocketing rise of 1,000 percent since early 2020, reaching an all-time high of $61,800 over the weekend.
Meanwhile, gold only went as high as $2,049 in late August 2020 and has declined below the $2,000 level since then (trading at $1,735 per ounce at press time).
Schiff's son Spencer, however, is a Bitcoiner and has recently converted all of his portfolio into BTC, selling silver stocks to do it.
Morgan Stanley limiting crypto access to 2.5% of high net worth individual accounts, that have over $2 million in assets and have been active for over six months, shows that the bank realizes #Bitcoin is very risky and wants to limit legal liability from investors who lose money.
Yuri MolchanBitcoin surges back to $59,000
After falling from the $61,800 level on Sunday due to a massive sell-off, Bitcoin started rallying on Wednesday after the Fed chairman Jerome Powell stated that the U.S. Central Bank will not raise rates until late 2023.
Earlier today, the flagship crypto soared to the $59,600 zone, as reported by U.Today. By now, however, BTC has declined and is changing hands at $58,073 at press time.
Arman Shirinyan
Alex Dovbnya
U.Today Editorial Team
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Dan Burgin