Morgan Stanley and UBS are actively competing to become the first major banks to offer customers access to spot Bitcoin exchange-traded funds (ETFs), according to people familiar with the matter.
Morgan Stanley wants to be the first major bank to offer its customers full access to spot BTC ETFs, and is aiming to take UBS on the front lines with an announcement just days in advance, according to people familiar with the matter.
Arch Public co-founder Andrew Parish shared the following developments: Social mediaquoted a source. He also revealed that UBS plans to announce an ETF offering during the week of April 8th.
The introduction of Bitcoin ETFs has already been partially implemented within UBS's Private Wealth Management (PWM) division, and will technically be available “unilaterally” to individuals with assets of over $10 million. was.
Discussions currently revolve around full approval across financial institutions' platforms, which would allow financial advisors to proactively incorporate Bitcoin ETFs into their clients' portfolios.
In the middle of TradFi
This competition highlights the increasing acceptance of cryptocurrencies in mainstream financial markets and signals a major shift towards incorporating digital assets into traditional investment portfolios.
Demand for spot Bitcoin ETFs pushed Bitcoin to a new all-time high on March 14th. The ETF achieved remarkable success in the US market, soon he had over $12 billion in inflows and by early April had generated trading volume of over $150 billion. .
ETF activity has slowed recently, but the anticipated entry of Morgan Stanley and UBS into this market could reignite interest and activity in ETFs.
Meanwhile, industry insiders have previously revealed that major financial institutions are conducting due diligence and plan to begin offering exposure to Bitcoin ETFs to their clients starting in the second quarter.
“Chicken Compliance Game”
Meanwhile, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said sources told him that most banks have not added Bitcoin ETFs to their offerings and are in a “holding pattern.”
He described the situation as a “game of compliance chicken” with each bank waiting for the others to act first. This will provide the necessary regulatory and operational cover for other companies to follow suit.
Despite the general caution, UBS has taken the precautionary step of allowing private wealth management clients access to these ETFs with certain restrictions. This move marks a step-by-step approach towards providing a broader range of services, including advisory services to integrate these ETFs into clients' portfolios.
As the financial industry prepares for this potential change, the timing and impact of Morgan Stanley and UBS's efforts in the spot BTC ETF market remain highly anticipated. Their entry could redefine investment strategies and further integrate digital assets into the mainstream of the economy.
