Morgan Stanley and UBS are working to become the first major US banks to offer spot Bitcoin ETFs to all their clients, according to social media reports.
With $1.26 trillion and $1.1 trillion in assets under management, respectively, Morgan Stanley and UBS are two of the largest wealth managers in the world. Both are fighting to fully approve Bitcoin ETF trading on their platforms at a pivotal time for institutional adoption of Bitcoin.
The reports come from Bitcoin insider Andrew on X and Bloomberg analyst Eric Balchunas.
Andrew, an influential Bitcoin commentator, tweeted that Morgan Stanley could announce its Bitcoin ETF listing “a few days before” UBS. He said global banks were urgently discussing adding these products.
UPDATE: several notes from @Morgan Stanley executes this AM; salty about @UBS posted yesterday. They want to be the first organization to fully endorse the #Bitcoin ETFs.
– @Morgan Stanley can announce a few days before @UBS.
– interesting what global banks are talking about $BTC ETFs…
-André (@AP_Abacus) April 3, 2024
At first skeptical, Balchunas of Bloomberg agreed companies are playing a “compliance game” over Bitcoin ETF approvals.
The upcoming launches would mark a major milestone for mainstream acceptance of Bitcoin. Morgan Stanley adding that BTC ETF trading would be a stunning turnaround after CEO James Gorman said last year that he didn't think Bitcoin had much traction as an institutional asset class.
Access could be imminent, pending strict compliance checks. But a green light would still represent a watershed moment for Bitcoin.
Leading wealth managers offering ETF trading would convey growing confidence in the longevity of Bitcoin and expose millions of new investors to the market. Being a leader in Bitcoin ETFs could attract billions in new client assets. These measures also demonstrate growing confidence in Bitcoin's longevity among the global banking elite.
The accelerated race between giants like Morgan Stanley and UBS validates the promise of Bitcoin. Other wealth managers will likely quickly follow suit.
As game theory takes hold, Bitcoin's march toward the traditional financial system gains irresistible momentum. Mass adoption by banks may be closer than many imagine.