Morgan Stanley has become the first major United States bank to offer Wealth Management clients access to bitcoin funds. The bank will work with Galaxy Digital to offer the services to its leading clients.
Morgan Stanley leads the way
Leading US investment bank Morgan Stanley announced earlier today that its wealth management clients can now access Bitcoin funds. The move will open up the Bitcoin market to the trillions of dollars the bank manages for wealth management clients.
According to a CNBC report earlier today, Morgan Stanley told its s financial advisors in an internal memo that it is launching access to three funds, allowing ownership to the leading cryptocurrency.
The move is an exceptional one as Morgan Stanley is now the first major US bank to provide the service to its wealth management clients. Morgan Stanley made this move due to huge demand from clients to gain exposure to Bitcoin, sources close to the situation told CNBC.
There are certain restrictions attached to the Bitcoin funds. They would only be available to the bank’s wealthier clients. These are clients with at least $2 million in assets held by the firm as they are considered to be more risk-tolerant. Investment firms must have a minimum of $5 million to qualify for the new stakes, and their accounts have to be at least six months old. Furthermore, Morgan Stanley is limiting Bitcoin investments to just 2.5% of the accredited investors’ total net worth.
Morgan Stanley partners with Galaxy Digital to offer Bitcoin funds
Morgan Stanley would be working with three firms to provide the services to its clients. Galaxy Digital will be offering two of the three Bitcoin funds, while the third is a joint effort from NYDIG and FS Investments.
Galaxy Digital CEO Mike Novogratz is excited by this development. He announced it via Twitter, saying, “Galaxy is thrilled to partner with Morgan Stanley, the first US bank to offer Wealth Management clients access to bitcoin funds.”
The minimum investment required to access the Galaxy Institutional Bitcoin Fund LP is $5 million, while the Galaxy Bitcoin Fund LP and FS NYDIG Select Fund start at $25,000 each. The investment vehicles would become available next month, right after Morgan Stanley’s financial advisors complete training courses tied to the Bitcoin funds.