Two major banks, Morgan Stanley and UBS, are reportedly in a race to offer their clients access to spot Bitcoin exchange-traded funds (ETFs). Sources familiar with the matter have revealed that both banks are actively competing to be the first to launch these ETFs.
According to sources, Morgan Stanley is aiming to beat UBS to the punch by announcing full access to spot BTC ETFs for its clients a few days earlier. The news was shared by Arch Public co-founder Andrew Parish on social media, who cited sources confirming the competition between the two banks.
UBS has already begun implementing Bitcoin ETFs within its Private Wealth Management division, making them available to individuals with assets over $10 million on an ‘unsolicited’ basis. The discussions now focus on obtaining full approval to include Bitcoin ETFs in client portfolios across both institutions’ platforms.
The competition between Morgan Stanley and UBS signifies a growing acceptance of cryptocurrencies in the mainstream financial market. The demand for spot Bitcoin ETFs has been evident, with Bitcoin reaching a new all-time high on March 14. ETFs in the US market have been highly successful, attracting billions in inflows and generating billions in trading volume.
While ETF activity has slowed down recently, the anticipated entry of Morgan Stanley and UBS into the market could reignite interest and activity. Industry insiders have suggested that major financial institutions will begin offering clients exposure to Bitcoin ETFs in the second quarter of this year.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, described the situation as a “compliance game of chicken,” with banks waiting for each other to make the first move. UBS has taken preliminary steps by allowing access to Bitcoin ETFs for its Private Wealth Management clients, indicating a gradual approach towards a broader offering.
The arrival of Morgan Stanley and UBS in the spot Bitcoin ETF market is highly anticipated and could have a significant impact on investment strategies. Their initiatives could further integrate digital assets into the mainstream economy, marking a notable shift in the finance industry.
