Morgan Stanley set to offer high net worth clients access to bitcoin funds: report


Morgan Stanley is expected to offer high net worth clients the option of investing in bitcoin funds, making it the first major U.S. bank to do so, CNBC reported Wednesday.

The MS investment bank,
-0.70%
told financial advisers in an internal memo that it would provide wealth management clients with access to three bitcoin-related funds, according to the report, which cites people with first-hand knowledge of the matter. Morgan Stanley declined to comment on the report.

Bitcoin bulls argued that broader institutional and commercial acceptance of cryptocurrencies would justify a continued rise in the price of the volatile digital asset, which hit an all-time high above $ 60,000 over the weekend. latest. Bitcoin BTCUSD,
-3.20%
was weaker in morning trading, following the report, but surged higher in afternoon action, rallying as stocks rallied – and the dollar fell – after the Federal Reserve and President Jerome Powell adopted an accommodating tone at the conclusion of a two-day political meeting. Bitcoin rose 2.2% to $ 57,615 in activity as of late afternoon.

The report says two of the funds on offer come from Galaxy Digital, a crypto firm founded by veteran hedge fund manager Michael Novograts; the third is a joint effort of asset manager FS Investments and bitcoin firm NYDIG.

Critics of Bitcoin argue that so-called cryptocurrencies remain largely a bubble phenomenon. Volatile price fluctuations make them impractical to use as currency or store of value.

Proponents have long argued that digital assets are a hedge against the degradation of fiat currencies and that the underlying blockchain technology is extremely attractive in terms of privacy and 24-hour access.

And bitcoin bulls applauded Tesla Inc. TSLA’s growing institutional interest,
+ 0.33%

More generally, the rise of bitcoin has been linked to the institutional interest of Tesla Inc. TSLA, -1.82%, which earlier this year invested $ 1.5 billion in bitcoin.

PayPal Holdings Inc. PYPL,
-2.34%
in November, opened its cryptocurrency platform to all U.S. customers after leading a narrower rollout. And several leading Wall Street players, including Stanley Druckenmiller and Paul Tudor Jones, have embraced bitcoin. And some skeptics, like Howard Marks of Oaktree Capital Management, softened their tone, acknowledging that the jury is out on the long-term viability of bitcoin.

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