The $4 trillion wealth management firm is providing high-end clients with access to three funds that provide bitcoin (BTC, +6.46%) exposure. The report cites an internal memo and unnamed sources with knowledge of the matter.
The investment bank told its financial advisors Wednesday in an internal memo that it is launching access to three funds that enable ownership of bitcoin, according to people with direct knowledge of the matter
Morgan Stanley is only allowing its wealthier clients access to the volatile asset: The bank considers it suitable for people with “an aggressive risk tolerance” who have at least $2 million in assets held by the firm. Investment firms need at least $5 million at the bank to qualify for the new stakes.
Two of the funds on offer are from Galaxy Digital, a crypto firm founded by Mike Novogratz, while the third is a joint effort from asset manager FS Investments and bitcoin company NYDIG.
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.
The latest move according to the media 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. [CNBC]