Big bank allows wealth advisors to promote bitcoin ETFs for the first time.

• Morgan Stanley has announced that it will soon permit its financial advisors to offer bitcoin ETFs to select clients, marking a first among major Wall Street banks, according to CNBC's report.
• According to sources, starting Aug. 7, the firm's approximately 15,000 financial advisors will be able to promote eligible clients to invest in two exchange-traded bitcoin funds.
• The funds mentioned are BlackRock's IShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund, according to sources.

CNBC has learned that on Friday, a major Wall Street bank announced that it will soon allow its army of financial advisors to offer bitcoin ETFs to some clients, marking a first among major banks.

Starting Wednesday, the firm's 15,000 financial advisors can promote eligible clients to buy shares in two exchange-traded bitcoin funds, according to sources.

The funds mentioned were iShares Bitcoin Trust and Wise Origin Bitcoin Fund, according to the statement.

The adoption of bitcoin by mainstream finance is evidenced by the recent move of Morgan Stanley, one of the world's largest wealth management firms. In January, the U.S. Securities and Exchange Commission approved applications for 11 spot bitcoin ETFs, making it easier, cheaper and more readily traded for investors.

The market sell-offs, the collapse of crypto exchange FTX, and criticism from prominent figures in finance such as Jamie Dimon and Warren Buffett have weathered the market.

It's not surprising that Wall Street's major wealth management firms initially resisted the new ETFs, prohibiting their financial advisors from promoting them and only allowing trades if clients specifically requested the product.

According to spokespeople at the four banks, JPMorgan still follows that policy.

'Aggressive' tolerance

Morgan Stanley has responded to client demand and market trends for digital assets by making a move, according to unnamed sources who spoke about the bank's internal policies.

The bank is still issuing a warning about the rollout of bitcoin ETF solicitation, as only clients with a net worth of at least $1.5 million, a high risk tolerance, and a desire to make speculative investments are suitable for these investments. These investments are intended for taxable brokerage accounts, not retirement accounts, the bank emphasized.

Sources indicate that the bank will monitor clients' crypto holdings to prevent excessive exposure to the volatile asset class.

Morgan Stanley only approves the purchase of bitcoin ETFs and private funds from Galaxy and FS NYDIG, which were made available in 2021.

Morgan Stanley is monitoring the development of the market for newly approved ether ETFs and has not yet decided whether it will offer access to them, according to sources.