(Bloomberg) – Morgan Stanley plans to offer high net worth clients access to three funds that, according to a person familiar with the matter, will allow the ownership of bitcoin.
Galaxy Digital operates two of the funds, and the third is overseen by FS Investments and NYDIG, the person said, asking not to be identified as the move was not publicly announced.
Only high net worth clients with “aggressive risk tolerance” and at least $ 2 million held by the New York-based company have access to the funds. CNBC reported the decision earlier Wednesday.
Wall Street banks largely remained on the sidelines as cryptocurrencies grew in popularity. While futures contracts based on Bitcoin and Ether, the second largest digital currency, are available on major exchanges, none of the six largest US banks has yet offered their customers access.
Read more about Wall Street’s research into cryptocurrencies
James Gorman, chief executive officer of Morgan Stanley, was one of the first Wall Street leaders to give credibility to Bitcoin and said in 2017 it was more than just a fad. The company flirted with the idea of trading a swap-based product tied to the cryptocurrency that would give customers a synthetic risk to the coin, but ultimately it got no further.
Andrew Peel, head of digital assets markets at Morgan Stanley, said the bank has piqued more interest in bitcoin from traditional financial firms in recent months.
– With the assistance of Matthew Leising.