Morgan Stanley (MS) will permit wealthy clients to use three funds that allow ownership of Bitcoin, potentially starting in April, marking the latest sign of mainstream acceptance for the volatile cryptocurrency.
The news was first reported by CNBC, which said the bank is the first in the U.S. to allow wealthy clients access to such funds and made the decision after more of its customers sought exposure as the price of Bitcoin has soared over the past year.
Morgan Stanley will allow people who have at least $2 million in assets with the firm to access the cryptocurrency, CNBC said. Investment firms need at least $5 million.
Any account using the Bitcoin funds needs to be at least six months old, and the bank will also cap Bitcoin investments at 2.5% of the investors’ net worth, CNBC said. The crypto firm Galaxy Digital will offer two of the funds, with the third from FS Investments and NYDIG.
Morgan Stanley Stock, Price Of Bitcoin Rise
The Wall Street banking giant declined to comment. Morgan Stanley stock closed up 1.5% in the stock market today. Shares have an 88 Composite Rating and a 96 EPS Rating.
The price of Bitcoin rose 3% to $58,008 on Wednesday, reversing higher after the Fed released dovish rate guidance. Among Bitcoin stocks, Grayscale Bitcoin Trust (GBTC) rallied 4.3%.
Morgan Stanley’s interest in Bitcoin comes amid wider interest in the cryptocurrency.
Within the financial world, Goldman Sachs (GS) has reportedly restarted its cryptocurrency trading desk. JPMorgan Chase (JPM) has launched its own digital currency.
Bank of New York Mellon (BNY), the oldest bank in the U.S., has also said it plans to launch a segment to help with the safekeeping of cryptocurrencies.
The price of Bitcoin has surged in value over the past year. Many have attributed the gains to interest in alternative currencies as stimulus efforts intended to fight the coronavirus pandemic weaken the U.S. dollar.
Bitcoin has also moved higher after large companies like PayPal (PYPL) last year said it would allow users to buy and sell cryptocurrencies from their PayPal accounts. Electric-vehicle maker Tesla (TSLA) last month disclosed that it had bought $1.5 billion in Bitcoin.
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