Morgan Stanley is set to allow its wealth advisors to offer spot Bitcoin ETFs to select high-net-worth clients starting August 7, 2024.

The ETFs available for recommendation include BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, marking a significant shift in the bank's investment strategy.

This initiative represents a historic milestone for the cryptocurrency industry, as major financial advisory firms have been hesitant to adopt spot crypto ETFs until now.

The decision to offer these products is driven by rising client demand for cryptocurrency-related investments.

Eligible clients must have a net worth of at least $1.5 million and a strong risk tolerance to qualify for these Bitcoin ETF promotions.

Morgan Stanley plans to actively monitor clients' crypto holdings to prevent excessive exposure to this volatile asset class.

Despite a significant influx of $60 billion into spot crypto ETFs in 2024, most investments have come from retail investors and hedge funds rather than traditional financial advisers.

Market analysts view Morgan Stanley's involvement as a positive development for the cryptocurrency industry, underscoring the success of spot Bitcoin ETFs.

Bitcoin has seen a remarkable increase of 46% this year, with the two Bitcoin-tracking funds gaining about 35%.

Managing nearly $5.7 trillion in client assets, Morgan Stanley stands as the largest among U.S. wirehouse brokers, further emphasizing the significance of its new offering.

The bank has not yet commented on this new offering, leaving some details about its implementation unclear.