The competition among investment banks to be the first to incorporate spot Bitcoin exchange-traded funds (ETFs) in the United States has intensified, with Morgan Stanley and UBS vying for the top spot. Both financial giants are slated to introduce their Bitcoin ETFs next week, with assets under management of $1.26 trillion and $1.1 trillion respectively. This move marks a significant moment for the institutional adoption of Bitcoin, as these institutions are among the largest wealth managers globally. Morgan Stanley is aiming to outpace UBS and become the first wirehouse to fully approve the Bitcoin ETF, with reports suggesting that the bank may announce its move shortly before implementation.
Bloomberg ETF expert Eric Balchunas disclosed that neither Morgan Stanley nor UBS has yet added Bitcoin ETFs, citing reliable sources. Both banks are engaged in a compliance standoff, waiting for one to make the first move, which could potentially lead to a simultaneous adoption of Bitcoin ETFs by both institutions. Speculation about Morgan Stanley’s potential rivalry with UBS comes in the wake of earlier reports indicating the bank’s imminent approval of Bitcoin ETFs. UBS, on the other hand, is expected to integrate Bitcoin ETFs into its platform between April 8 and April 12, according to sources.
Morgan Stanley is currently conducting due diligence to potentially add spot Bitcoin ETF products to its brokerage platform, following the approval of such products by the Securities and Exchange Commission in January. The launch of spot Bitcoin ETFs in the United States on January 11 was a significant milestone after years of efforts to launch such products. However, customers of major banks like UBS and Citi faced difficulties accessing spot Bitcoin ETFs, with each bank providing different reasons for not listing these investment products.
There are currently 10 spot Bitcoin ETFs trading in the U.S., with the most assets held by products like Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. It remains unclear which ones Morgan Stanley is considering offering to its clients. The potential approval of Bitcoin ETFs by major wealth managers like Morgan Stanley could signify a pivotal moment for the cryptocurrency. If granted, it would signal a growing confidence in Bitcoin’s long-term viability and expose millions of new investors to the market. Furthermore, being at the forefront of Bitcoin ETFs could attract billions in new client assets for these banks, reflecting increasing confidence in Bitcoin’s future among the global banking elite.
The debut of spot Bitcoin ETFs in the United States on January 11 was a significant milestone after years of efforts to launch such products. However, customers of major banks like UBS and Citi encountered difficulties accessing spot Bitcoin ETFs, with each bank providing different reasons for not listing these investment products. UBS stated that spot Bitcoin ETFs could only be offered in brokerage accounts and were suitable solely for “aggressive investors”, emphasizing the importance of issuers demonstrating their ability to manage the product effectively, especially during volatile market conditions.
Andrew had previously suggested that Morgan Stanley was gearing up to greenlight Bitcoin ETFs within the next two weeks. With the potential approval of Bitcoin ETFs by major wealth managers like Morgan Stanley, it could signify a pivotal moment for the cryptocurrency. If granted, it would signal a growing confidence in Bitcoin’s long-term viability and expose millions of new investors to the market. The competition among investment banks to incorporate spot Bitcoin exchange-traded funds (ETFs) is growing, with Morgan Stanley and UBS competing to be the first wirehouse to fully approve the Bitcoin ETF on their platforms. This development reflects the increasing institutional adoption of Bitcoin and the potential for significant growth in the cryptocurrency market.
