Morgan Stanley and UBS are working to become the first major US banks to offer spot bitcoin ETFs to all clients, according to social media reports.
With $1.26 trillion and $1.1 trillion in assets under management respectively, Morgan Stanley and UBS are two of the largest wealth managers in the world. Both are vying to fully approve bitcoin ETF trading on their platforms at a crucial time for institutional bitcoin adoption.
The reports come from bitcoin expert Andrew on x and Bloomberg analyst Eric Balchunas.
twitter.com/AP_Abacus”>Andrew, an influential bitcoin commentator, tweeted that Morgan Stanley could announce its bitcoin ETF listing “days before” UBS. He said global banks have been urgently discussing adding the products.
<blockquote class="twitter-tweet”>
UPDATE: several notes from twitter.com/MorganStanley?ref_src=twsrc%5Etfw”>@Morgan Stanley run this AM; salty about twitter.com/UBS?ref_src=twsrc%5Etfw”>@UBS yesterday's post. They want to be the first cable manufacturer to fully approve the twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF.
– twitter.com/MorganStanley?ref_src=twsrc%5Etfw”>@Morgan Stanley can announce a few days before twitter.com/UBS?ref_src=twsrc%5Etfw”>@UBS.
– interesting what global banks talk about twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc ETFs…
– Andrés (@AP_Abacus) twitter.com/AP_Abacus/status/1775527946343653779?ref_src=twsrc%5Etfw”>April 3, 2024
Initially skeptical, Bloomberg's Balchunas x.com/EricBalchunas/status/1775538520515359225?s=20″>agreed Companies are playing a “game of compliance chicken” over bitcoin ETF approvals.
The upcoming launches would mark a major milestone for the widespread acceptance of bitcoin. Morgan Stanley adding btc ETF trading would be a surprising U-turn after CEO James Gorman said last year that he didn't believe bitcoin would have much acceptance as an institutional asset class.
Access could be imminent, depending on strict compliance reviews. But a green light would still represent a watershed moment for bitcoin.
Large wealth managers offering ETF trading would convey growing confidence in bitcoin's longevity and expose millions of new investors to the market. Being a leader in bitcoin ETFs could attract billions in new client assets. The moves also indicate growing confidence in bitcoin's longevity among the global banking elite.
The accelerating race between giants like Morgan Stanley and UBS validates the promise of bitcoin. Other wealth managers are likely to quickly follow suit.
As game theory takes hold, bitcoin's march into the mainstream financial system gains irresistible momentum. Significant banking adoption may be closer than many imagine.
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