The competition between 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 aiming to fully approve Bitcoin ETF trading on their platforms, with assets under management of $1.26 trillion and $1.1 trillion, respectively. This move would mark a significant moment for the institutional adoption of Bitcoin. Reports suggest that Morgan Stanley may announce its Bitcoin ETF approval shortly before UBS, sparking discussions among global banks about the potential addition of Bitcoin ETFs to their platforms.
Cryptocurrency insider Andrew AP Abacus has provided updates on the situation, indicating that Morgan Stanley is looking to outpace UBS and become the first wirehouse to fully approve the Bitcoin ETF. However, Bloomberg ETF expert Eric Balchunas has revealed that neither Morgan Stanley nor UBS has yet added Bitcoin ETFs. Both banks are reportedly engaged in a compliance standoff, waiting for one to make the first move, which could lead to simultaneous adoption of Bitcoin ETFs by both institutions. UBS is said to be planning to integrate Bitcoin ETFs into its platform between April 8 and April 12.
Morgan Stanley is currently conducting due diligence on the potential addition of spot Bitcoin ETFs to its brokerage platform. The bank has been evaluating offering these products to clients since the Securities and Exchange Commission approved their introduction in the U.S. in January. Despite the debut of spot Bitcoin ETFs in the U.S. on January 11, major banks like UBS and Citi faced difficulties in offering these products to their customers. The potential approval of Bitcoin ETFs by major wealth managers like Morgan Stanley could be a pivotal moment for the cryptocurrency, showcasing growing confidence in Bitcoin’s long-term viability and exposing millions of new investors to the market.
Major registered investment advisor networks and broker-dealer platforms associated with firms like Merrill Lynch, Morgan Stanley, and Wells Fargo may hold the key to fully opening the floodgates of investment in Bitcoin ETFs. UBS had previously stated that spot Bitcoin ETFs could only be offered in brokerage accounts and were suitable for “aggressive investors.” The bank emphasized the importance of issuers demonstrating their ability to manage the product effectively, particularly during volatile market conditions. Currently, there are 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.
The potential approval of Bitcoin ETFs by major wealth managers like Morgan Stanley and UBS could attract billions in new client assets, reflecting increasing confidence in Bitcoin’s future among the global banking elite. This move could signify a significant step towards broader institutional adoption of cryptocurrencies and could open the doors for more investors to participate in the market. As the competition between these financial giants heats up, the introduction of Bitcoin ETFs on their platforms could have far-reaching implications for the cryptocurrency industry and the financial sector as a whole.
