It is the first time where any bank is giving its wealth management clients access to their Bitcoin funds. Morgan Stanley, a big U.S. bank is offering its clients access to its Bitcoin funds, says a report from CNBC on Wednesday.
In their internal memorandum, the bank asked its financial advisers for the launch access to three funds, which includes allowing ownership of the digital gold (Bitcoin) citing people with direct knowledge of the matter.
Bitcoin’s present price at the time of writing is $58,640. Recorded all-time high at $61,781.83 a few days back, the coin bull remains short-lived. The news of banning cryptocurrencies by the Indian Government and investors planning for consolidated gains after the bull are the reasons for the sudden downfall in the price.
Last month, a piece of news from the bank of NY Mellon Corp formed a unit to help its clients issue, transfer, and hold digital assets.
Crypto fans associated with Morgan Stanley also demand exposure to cryptocurrencies, which drives their decision to provide access to the Bitcoin funds.
In the case of Morgan Stanley, access to funds will only be permitted to the people who have at least $2million in assets, held by the bank. Investment firms having at least $5 million in the bank are also marked eligible. According to the report, in both conditions, the accounts should be at least six months old.
For investors with enough assets to qualify, the bank is limiting investment to 2.5% of the total net worth. The two funds that are to be offered are from a crypto firm founded by Michael Novogratz, Galaxy Digital. The third one is a joint effort from asset manager FS Investments and Bitcoin company NYDIG.