More Money Could Be Coming Into Bitcoin ETFs Soon

Pitching is extremely important in the world of traditional finance. Most clients come from professions other than finance, so their financial advisors present various options for them to choose.

Obviously, the end goal for any investment firm is to earn their commissions. At times, they can offer risky products for wealthy clients, although in most cases such firms tend to be rather conservative in order to have a long business relationship with their clients.

Before the approval of spot Bitcoin ETFs, U.S. financial advisors had nothing to offer for their clients. Cryptos were considered risky and traded on crypto exchanges. However, things have changed materially when spot crypto ETFs have started to trade on traditional exchanges. Now, financial advisors have something to pitch to their clients. First, they needed a nod from their investment firm.

Finally, it looks like big firms are ready to start pitching crypto ETFs. According to a recent CNBC report, Morgan Stanley has decided to allow its financial advisors to offer spot Bitcoin ETFs to eligible clients. Morgan Stanley plans to offer iShares Bitcoin Trust (IBIT, managed by BlackRock) and Wise Origin Bitcoin Fund (FBTC, managed by Fidelity).

This is an extremely important development for Bitcoin and crypto in general. Morgan Stanley is one of the biggest asset managers in the world, and its clients can move markets.

Crypto fans often believe that since Bitcoin is so popular, everyone knows about it and wants to invest. In reality, this is not the case. For many investors, finance is not a profession, so they rely on brokers and investment firms for advice. Such investors need a “stamp of approval” from their advisors before they are ready to invest in a certain asset.

 Crypto is still considered risky by many investors, despite surviving multiple crises. In this light, pitching from Morgan Stanley can make a difference for Bitcoin markets and bring new Bitcoin buyers.

The investment world is extremely competitive. Most likely, other asset managers are not going to sit idle, watching how Morgan Stanley offers the hot product to its clients. Most of them will join Morgan Stanley soon. Thus, the flow of money into spot Bitcoin ETFs would grow, raising demand for Bitcoin and pushing its price higher. If everything goes well, we can expect to see the first impact closer to the end of 2024.

Interestingly, BlackRock believes that crypto ETFs will be included in model portfolios by the end of this year. This would be a major development for crypto markets as many people follow such portfolios and make their investment decisions accordingly. The inclusion of crypto ETFs into model portfolios will surely bring more money into crypto markets.

The key advantage for private investors who do not rely on financial advisors or model portfolios is that they can buy Bitcoin at any time. Moreover, they can own real Bitcoin instead of using intermediaries like BlackRock and paying them commissions. There are few situations in the market when the small guy has an edge over a large investment firm, so don’t hesitate to use your advantage.