Investment bank Morgan Stanley has become the “first big U.S. bank to offer its wealth management clients access to bitcoin funds. As per the reports, the firm has told its financial advisors in an internal memo that it is launching access to three funds that allow exposure to bitcoins.
Morgan Stanley has $4 trillion in client assets and allowing exposure to bitcoin funds will definitely will be good for the institutional acceptability of bitcoin. The Bitcoin funds on offer are:
- Galaxy Bitcoin Fund LP
- Galaxy Institutional Bitcoin Fund LP
- FS NYDIG Select Fund (from FS Investments and New York Digital Investments Group (NYDIG)
Two funds have minimum investments of $25,000, but Galaxy Institutional Bitcoin Fund has a $5 million minimum.
The funds are only available to clients of Morgan Stanley’s wealth management division with at least $2 million in assets held by the firm with “an aggressive risk tolerance”. Investments are restricted to 2.5% of the client’s total net worth.
Goldman Sachs, JPMorgan Chase, and Bank of America’s wealth management divisions do not currently allow their advisors to offer direct investment in bitcoin funds.