Morgan Stanley Stopped Its Financial Advisors From Offering Clients Newly Launched Bitcoin Futures ETF

Morgan Stanley, one of the leading US investment banks, has stopped its financial advisors from offering clients a Bitcoin futures ETF launched by ProShares.

The institution is in the process of evaluating the prospectus and conducting due diligence on the BTC ETF.

Business Insider writes:

“Morgan Stanley is not allowing its financial advisors to immediately offer clients the brand-new bitcoin futures-based exchange-traded fund that started trading on Tuesday, a person familiar with the matter said. 

The firm is in the process of evaluating the product’s prospectus and conducting due diligence on the fund, according to the person, who spoke anonymously to discuss a company policy.”

Bank representatives declined to comment on the publication.

The ProShares Bitcoin Futures ETF made its second-largest trading debut. Bitcoin Futures ETF Becomes Second-Highest Traded Fund Ever, Almost Trading $1 Billion On the First Day.

Mark Hefele, chief investment officer at UBS Global Wealth Management noted that his firm tells clients to consider investments other than crypto. According to him, the organization considers crypto products only for speculative-minded investors with a high-risk appetite.

Recall that in March, CNBC announced Morgan Stanley’s plans to open access to bitcoin funds to accredited investors with a capital of at least $2 million.

In June, asset managers from New York Digital Investment Group and FS Investments filed an application with the SEC to register a bitcoin fund intended for Morgan Stanley clients.

In September, Morgan Stanley formed a team that focuses on studying the impact of cryptocurrencies on equities and fixed income instruments.