US investment bank Morgan Stanley has filed with the Securities and Exchange Commission to launch two exchange-traded funds, including a spot Bitcoin product.
A late ETF entry with strategic upside
ProCap chief investment officer Jeff Park said the bank may benefit even if its ETF does not become a major asset-gatherer.
Park said the value could come from “social, reputational, and financial benefits” that extend beyond inflows.
He said Morgan Stanley is betting that the product can help build clout, including by making the firm look more pro-Bitcoin:
“Morgan Stanley is making the bet that even if their ETF doesn’t scale to blockbuster success, there’s an intangible benefit that will help build their clout.”
Brokerage and tokenization angle
Park pointed to Morgan Stanley’s attention on monetizing its ETRADE brokerage arm through bitcoin trading and tokenization partnerships.
He also said the move could help with recruiting, describing it as a “positive externality” in competition for talent.
‘Others could follow,’ Morningstar says
Morningstar ETF analyst Bryan Armour told Reuters that Morgan Stanley may be looking to move existing clients who invest in bitcoin into its own ETF, potentially giving it a faster start despite entering the market later.
Armour added:
“A bank entering the crypto ETF market adds legitimacy to it, and others could follow.”
Morgan Stanley is often grouped among the world’s top investment banks alongside Goldman Sachs and JPMorgan.
While those firms have bitcoin investment ties, neither currently offers its own bitcoin ETF.
US spot bitcoin ETF activity can be tracked via Bitbo’s ETF dashboards and daily flow data.
