Morgan Stanley Seeks to Outpace UBS as the Initial Bank to Grant Complete Approval for Bitcoin ETF

The rivalry among investment banks to be the first to launch spot Bitcoin exchange-traded funds (ETFs) in the United States has escalated, with Morgan Stanley and UBS competing for the lead.

As reported by crypto insider Andrew AP Abacus, both financial institutions are expected to unveil their Bitcoin ETFs next week.

Morgan Stanley and UBS Compete for Bitcoin ETF Approval on Their Platforms

The assets managed by Morgan Stanley and UBS amount to $1.26 trillion and $1.1 trillion, respectively, positioning them among the largest wealth management firms worldwide. Both organizations are striving for full approval of Bitcoin ETF trading on their platforms, representing a significant advancement for institutional Bitcoin adoption.

UPDATE: several notes from @MorganStanley executives this morning; displeased about @UBS’s post yesterday. They aspire to be the first wirehouse to fully approve the #Bitcoin ETF’s.

– @MorganStanley may announce a few days ahead of @UBS.
– notable that global banks are discussing $BTC ETF’s…

— Andrew (@AP_Abacus) April 3, 2024

Reports from crypto enthusiast Andrew (AP_Abacus) on X indicate that Morgan Stanley is looking to surpass UBS and become the first wirehouse to fully approve the Bitcoin ETF.

Andrew referenced internal communications from Morgan Stanley, implying that the bank might announce its Bitcoin ETF plans shortly before implementation. This development has sparked conversations among global banks, perceiving the introduction of Bitcoin ETFs as a competitive challenge.

However, Bloomberg ETF analyst Eric Balchunas, contributing to Andrew’s X thread, revealed that neither Morgan Stanley nor UBS has yet incorporated Bitcoin ETFs, according to reliable sources.

Balchunas noted that both banks are in a compliance standoff, awaiting one to take the initiative, which would then enable the other to follow suit. This scenario could potentially result in simultaneous adoption of Bitcoin ETFs by both entities.

Andrew’s recent update follows his earlier report that UBS plans to integrate Bitcoin ETFs into its platform between April 8 and April 12.

UPDATE: sources indicate that #Bitcoin ETF’s will be added to @UBS platform next week and will be widely accessible.

– removal from PWM silo.
– removal of ‘unsolicited’ order restriction.
– @UBS manages $3.5T in global wealth.

— Andrew (@AP_Abacus) April 2, 2024

This speculation regarding Morgan Stanley’s potential competition with UBS follows earlier reports suggesting the bank’s imminent approval of Bitcoin ETFs. Andrew had previously indicated that Morgan Stanley was preparing to approve Bitcoin ETFs within the next two weeks.

Morgan Stanley Considers BTC ETFs for Brokerage Platform

Morgan Stanley is currently performing due diligence to possibly introduce spot Bitcoin ETF products to its brokerage platform, according to sources familiar with the situation. The bank has been assessing the provision of these products to clients since the Securities and Exchange Commission sanctioned their introduction in the U.S. in January.

The launch of spot Bitcoin ETFs in the United States on January 11 marked a significant achievement after years of efforts to establish such products. However, clients of major banks like UBS and Citi faced challenges in accessing spot Bitcoin ETFs, with each institution providing various reasons for not listing these investment options.

While billions of dollars have already been allocated to Bitcoin ETFs, the influx of investment may not fully materialize until these products are available through major registered investment advisor (RIA) networks and broker-dealer platforms linked to firms like Merrill Lynch, Morgan Stanley, Wells Fargo, and others.

For example, UBS stated that spot Bitcoin ETFs could only be offered in brokerage accounts and were deemed appropriate solely for “aggressive investors.” The bank also highlighted the necessity for issuers to demonstrate their capability to manage the product effectively, especially during volatile market conditions.

Currently, there are 10 spot Bitcoin ETFs trading in the U.S., with the highest assets held by products such as Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. It remains uncertain which options Morgan Stanley is contemplating offering to its clients.

The potential approval of Bitcoin ETFs by major wealth management firms like Morgan Stanley could represent a crucial moment for the cryptocurrency. If approved, it would indicate a growing confidence in Bitcoin’s long-term sustainability and introduce millions of new investors to the market.

Moreover, leading the way in Bitcoin ETFs could attract billions in new client assets for these banks, reflecting an increasing confidence in Bitcoin’s future among the global banking elite.

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