Morgan Stanley, a big US bank offering wealthy clients access to bitcoin funds

[Oshosondy]

Morgan Stanley becomes the first big U.S. bank to offer its wealthy clients access to bitcoin funds, this is a big move that will help in bitcoin adoption, the investment bank with $4 trillion in client assets will be limiting bitcoin investment to as much as 2.5% of their total networth.

It’s really 2,5% of their qualified customer’s net worth, not the client base. The limitation is set , I figure, to reduce their exposure to a very volatile asset (I wonder if they do that for other assets). Basically, they’re playing here to let the rich make the move without it being too much of a fall if things go sideways.

https://www.cnbc.com/amp/2021/03/17/bitcoin-morgan-stanley-is-the-first-big-us-bank-to-offer-wealthy-clients-access-to-bitcoin-funds.html
KEY POINTS
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.

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 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.

Bitcoin the most successful asset of the last decade getting more potential to possibly become the most successful asset of this decade.

[Quidat]

Morgan Stanley becomes the first big U.S. bank to offer its wealthy clients access to bitcoin funds, this is a big move that will help in bitcoin adoption, the investment bank with $4 trillion in client assets will be limiting bitcoin investment to as much as 2.5% of their total networth.

Bitcoin the most successful asset of the last decade getting more potential to possibly become the most successful asset of this decade.

2.5% of their total networth is something not really that big to brag on but at least this is much better rather than having nothing at all but i doubt that
those percentages would be changed up if they do find out if those big wealthy clients would really be demanding which is more than on that they
currently offering.Aside of this thing then lets talk about the adoption or recognition, no matter how small or big it is then it would be always
a positive one towards the future and hopefully this step do opens up other eyes on taking the same path.

[dothebeats]

What stops these wealthy people on handling those assets themselves especially if it gives them better yield in the long run? Well perhaps the safety net that Morgan Stanley offers in the event of a massive swing on an unexpected direction keeps them on using such services, though honestly they can also do this and net a lot more profits on their pockets.

I guess this will cause a domino effect on investment firms offering such services to their existing "wealthy" clients who don't have the luxury of time to handle the volatile cryptocurrency on their own.

[Oshosondy]

What stops these wealthy people on handling those assets themselves especially if it gives them better yield in the long run?

Some people will not do the bitcoin thing if there is no institution to guide them, you are not wrong, to just have noncustodial account is the best, but some people do not mind and really believe in institutions. For privacy, noncustodial if very important but for fast adoption, institutions are important.

[nelson4lov]

While it's just 2.5% worth of Morgan Stanley clients funds that can be used for Bitcoin purchases, I still think that it's a nice step. One taken in the right direction. This might just be a test run for the firm to see how it goes and maybe get some client feedback before offering more.  I'm super impressed with how much institutional money is being poured into crypto at the moment. It used to be a dream here in the community.

What stops these wealthy people on handling those assets themselves especially if it gives them better yield in the long run? Well perhaps the safety net that Morgan Stanley offers in the event of a massive swing on an unexpected direction keeps them on using such services, though honestly they can also do this and net a lot more profits on their pockets.
(...)

I feel that these investors keep their funds with firms like Morgan Stanley instead of themselves because they want to skip the setup processes and just skip to the good stuff. That's why they need these firms to manage their funds for them. Not a lot of rich folks are technically educated with new technologies let alone know how blockchain works. It's also worth noting that they might be too busy with other engagements.

[dolcemariposa1]

They have been getting more and more into Bitcoin for a while, when Jamie Dimon despised it years ago.

[Baofeng]

They have been getting more and more into Bitcoin for a while, when Jamie Dimon despised it years ago.

Forget about Dimon, he is irrelevant, we know why and what they did that time.

2.5% of billions of dollars could be a good start for Morgan Stanley. And I'm assuming that there could be some banks already offering this kind of service during last year super fast rally. And then more are thinking specially when Elon Musk and his company investments. And obviously it has a trickle effect already. And the price seems to bounce back to $58k right now, perhaps this news is one reason of the current spike.

[TravelMug]

What stops these wealthy people on handling those assets themselves especially if it gives them better yield in the long run?

Some people will not do the bitcoin thing if there is no institution to guide them, you are not wrong, to just have noncustodial account is the best, but some people do not mind and really believe in institutions. For privacy, noncustodial if very important but for fast adoption, institutions are important.

Right, remember that this is wealthy investors, and most probably very busy creating more wealth and doesn't have the time and they are technically prone to make mistakes if they keep buying bitcoin for themselves.

So having some hedge fund managers to take care bitcoin more them will be the logical choice. Anyways, this is very welcoming news if Morgan Stanley can attract a lot of wealthy clients to invest in bitcoin.

[Poker Player]

This is one more step that shows us that there is no stopping this. In a few years, owning Bitcoin, either directly or through a financial instrument such as an investment fund, will be as common as owning shares of the S&P 500. We keep seeing news like this quite frequently.

[masterrex]

I think thats not surprising nowadays especially when the price of Bitcoin was skyrocketed those mainstream financial institution like the one that was mentioned is trying to ride the hype of Bitcoin because they have the resources that can minimize the risk through proper fund management besides Morgan Stanley is an old financial player thats why they know what they are doing. 

[Lorence.xD]

This is one more step that shows us that there is no stopping this. In a few years, owning Bitcoin, either directly or through a financial instrument such as an investment fund, will be as common as owning shares of the S&P 500. We keep seeing news like this quite frequently.

That is if we don't encounter any big drop in the coming years that bitcoin is in the market, I mean that if bitcoin was to have a big drop like this, those who invested in it is going to be the one suffering, especially those who invested through banking institutions and we all know how tricky banking institutions are when it comes to making money out of their clientele.

[MrcMrc]

2.5% of their clients base is way too small, why not give all their customers the same right to have access to bitcoin?I think the bank is trying to play the hide and seek game here since the central financial system is afraid of bitcoin, but can not deny it potentials they have limited it access to only a few who have huge deposits that can cover up for losses in case the unexpected happens.

[DdmrDdmr]

<…>

It’s really 2,5% of their qualified customer’s net worth, not the client base. The limitation is set , I figure, to reduce their exposure to a very volatile asset (I wonder if they do that for other assets). Basically, they’re playing here to let the rich make the move without it being too much of a fall if things go sideways.

Actually, I was trying to see if there was a breakdown report of there customer base by the assets value they hold at the firm, in order to determine how many of their customers would have access to these bitcoin funds, but came back empty handed.

[Oshosondy]

It’s really 2,5% of their qualified customer’s net worth, not the client base. The limitation is set , I figure, to reduce their exposure to a very volatile asset (I wonder if they do that for other assets). Basically, they’re playing here to let the rich make the move without it being too much of a fall if things go sideways.

I had to quote that up there on the OP board, this will significantly help the company's customers by helping them to manage the risk bitcoin can pose during downtrend volatility but as bitcoin is still in its early time, there are still uptrends that will occur but such companies are so experienced to manage the risk effectively this way.

[davis196]

Morgan Stanley becomes the first big U.S. bank to offer its wealthy clients access to bitcoin funds, this is a big move that will help in bitcoin adoption, the investment bank with $4 trillion in client assets will be limiting bitcoin investment to as much as 2.5% of their total networth.

No,this is not "a big move that will help in Bitcoin adoption".
It sure helps for the positive image of Bitcoin,but this is not enough for mass BTC adoption.
2.5% out of 4 trillion USD is 100 billion USD,but most of the Morgan Stanley clients won't choose to buy BTC.
I'm not sure that they are actually going to buy any real BTC.Perhaps Morgan Stanley will just bet some money on the price movements of BTC and their customers will just get a bunch of numbers in their bank statements.

[buwaytress]

Wasn't it them or some other big bank just last week also reactivating a trading desk for crypto? Doesn't matter what they or their owners think about Bitcoin anymore (surely some would have had changes of heart this year too aftercovid performances come through) but it would seem now with their clients banging on their doors, going to be hard to pretend Bitcoin doesn't exist anymore.

Supply squeeze incoming?

[Lordhermes]

<...>

I just had a feeling right now that the wealthiest people will make use of bitcoin in the future while the poor dude on the Louis street uses the alternative coin, I don't care how others might view this but it's purely reality.
By the way, this is a welcome development and good news though, so many customers have deep trust in centralized banks so likewise there will be many turn up for the investment plan.

[bitgov]

If you are going to invest in BTC through bank then what’s wrong with fiat? You invest through banks and it will abuse your crypto money just like they abuse your fiat currency. The aim of BTC is to give authority of asset back in the hand of the owner which is greatly abused by banks for years.

[Searing]

If you are going to invest in BTC through bank then what’s wrong with fiat? You invest through banks and it will abuse your crypto money just like they abuse your fiat currency. The aim of BTC is to give authority of asset back in the hand of the owner which is greatly abused by banks for years.

Well...what I find interesting in all this...is that the first thing that wealthy/traditional money (firms like Morgan Stanley) think of when 'offering' Bitcoin services...

(from what I gather was 'squeaky noises of us, us!) from rich (by that I mean over $2 million for individuals and $5 million for firms) so that THEY are allowed

to be first on the train.

I mean talk about 'missing the train' and investing (with the high fees for this service I'd imagine) with Mogan Stanley, to be 'first' to get this service through

them. I mean the frigging 'mind boggles' when they could do the same thing on www.coinbase.com for crying out loud at a heck of a lot less $$$.

But for Morgan Stanley ..that is the 'draw' ...clueless 'newbs' with more than $2 million USD to get into BTC 'exclusively' so they think.

Well, it is the old way 'traditional brokerage' and money works..so whatever you're comfortable with...I guess.....but man are they gonna get taken

to the cleaners for the fees on top of say normal exchange fees to boot. I'd also bet they make them 'lock in' for a year or some such. God no,

Morgan Stanley won't take the risk. Quite the 'centralized' way to 'accumulate' Bitcoin a 'decentralized coin' IMHO!

Idiots!

Brad

[pooya87]

What stops these wealthy people on handling those assets themselves especially if it gives them better yield in the long run?

There are always people, usually older generation, who will always rely on centralization for everything even to handle their money, even if that centralized entity is the most corrupt one in the world and is emptying their pocket!
I suppose this is the trend for at least the end of this bull run, so we may get comfortable because 2021 will be people buying bitcoin through centralized entities like this until they realize their mistakes and start pulling out which can take another year.