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⚡Morgan Stanley to Launch Bitcoin ETFs for Advisors🏦

Croxroad

04 Aug 2024 — 4 min read

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🧱 Wall Street Milestone

Morgan Stanley has taken a significant step in the financial world by announcing that it will soon permit its financial advisors to offer bitcoin ETFs to select clients, marking a first among major Wall Street banks. Beginning Wednesday, the firm's approximately 15,000 advisors will be able to solicit eligible clients to purchase shares of two bitcoin exchange-traded funds: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. This move underscores the growing acceptance of bitcoin within mainstream finance, following the U.S. Securities and Exchange Commission’s approval of multiple spot bitcoin ETFs earlier this year.

This development reflects Morgan Stanley's response to increasing client demand and the evolving digital asset marketplace. Despite this progress, the bank remains cautious, limiting bitcoin ETF investments to clients with a net worth of at least $1.5 million who have a high-risk tolerance and are interested in speculative ventures. Investments will be restricted to taxable brokerage accounts, and the bank will closely monitor clients’ crypto holdings to manage exposure to this volatile asset class. Unlike Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo, which still restrict their advisors from promoting bitcoin ETFs, Morgan Stanley is positioning itself as a leader in adapting to the changing investment landscape.

Morgan Stanley’s cautious yet progressive approach signals a broader shift in the financial industry’s attitude towards cryptocurrencies. While the bank is embracing bitcoin ETFs, it remains reserved about other crypto investments and is observing developments in the ether ETF market without committing to offering them at this time. This move not only highlights the increasing legitimacy of bitcoin as an investment but also marks a notable shift in how traditional financial institutions engage with digital assets.

🤏 CleanSpark Reports

CleanSpark's July 2024 mining report reveals that the company sold just 2.54 Bitcoin during the month, with an average sale price around $62,000. Despite this low selling volume, CleanSpark mined 494 BTC in July, bringing its total mined BTC for the year to 4,108. As of July 31, 2024, CleanSpark reported holding 7,082 BTC in reserves. The company is expanding its operations, securing a new mining site in Wyoming and partnering with GRIID for a new facility in Tennessee, aiming to reach an operating hashrate of 32 exahashes per second by year-end.

The low selling pressure from CleanSpark is indicative of a broader trend within the mining sector. Since 2021, miner reserves have been steadily declining, reflecting reduced supply-side selling pressure. The Miner to Exchange Flow metric, which tracks BTC sent to exchanges by miners, saw a spike in July but remains low compared to earlier months. A 50% increase in miner revenues and rising Bitcoin hashrate during July also contributed to this subdued selling activity. Similar trends are observed with other miners, such as Mara, which did not sell any Bitcoin in June, suggesting a broader industry trend of holding onto Bitcoin in anticipation of potential price increases.

🚼 Market Value Change While Holding

The real profit or loss is realised only when you convert your Bitcoin back to dollars. For example, if you repurchase Bitcoin after your initial profit of $1,666.67 at a rate of $7,500 per BTC, you would hold 2.222 BTC. If the market price later rises to $8,000, selling your 2.222 BTC would yield $17,777.78. This sale results in a profit of $1,111.11, reflecting the gain realised from holding and later selling Bitcoin at a higher price.

🤣 Crox Road Memes

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