Morgan Stanley Opens Up to Crypto ETFs. Who’s Next?

Core Insights - Morgan Stanley has lifted restrictions on client investments in digital asset ETFs, previously limited to clients with at least $1.5 million in investable assets, indicating a significant shift in the firm's approach to crypto investments [2] - The digital asset ETF market is experiencing rapid growth, with the iShares Bitcoin Trust nearing $100 billion in assets, highlighting strong investor demand despite recent volatility in Bitcoin prices [2][3] - The change in Morgan Stanley's policy is expected to pressure competitors like Wells Fargo, UBS, and Merrill Lynch to enhance their crypto offerings to attract new assets under management (AUM) [5] Industry Developments - The SEC has facilitated quicker listings of various spot-price crypto ETFs, contributing to the evolving landscape of digital asset investments [2] - Vanguard, previously skeptical of crypto ETFs, is reevaluating its stance, reflecting a broader trend among financial institutions to adapt to increasing demand for crypto access [4] - The influx of advisors able to offer crypto investments is anticipated to drive significant asset growth in the ETF category, as firms respond to client and advisor demand [5][6]