Morgan Stanley and UBS are competing to be the first big banks to offer their clients access to Bitcoin exchange-traded funds (ETFs), sources say.

It is reported that Morgan Stanley wants to be the first bank to give clients complete access to spot BTC ETFs and will aim to beat UBS with an earlier announcement.

Andrew Parish, co-founder of Arch Public, shared this on social media, stating that UBS plans to announce the ETF offering the following week.

While UBS has already implemented Bitcoin ETFs in its Private Wealth Management division for wealthy individuals, discussions are now focusing on full approval across platforms to actively include them in client portfolios.

The competition between these banks signifies a growing acceptance of cryptocurrencies and a trend towards incorporating digital assets into traditional investment portfolios.

The introduction of Bitcoin ETFs has seen significant success in the US market, attracting billions in inflows and generating high trading volume. The anticipated entry of Morgan Stanley and UBS could spark renewed interest and activity in this market.

Industry insiders have hinted that major financial institutions are poised to offer clients exposure to Bitcoin ETFs in the coming months, with banks like UBS taking preliminary steps for a broader offering in the future.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, describes the situation as a "compliance game of chicken," with banks waiting for others to make the first move, providing regulatory and operational cover for all players.

UBS's initial steps involve allowing access to Bitcoin ETFs for Private Wealth Management clients, indicating a gradual approach towards including these assets in client portfolios. The upcoming initiatives by Morgan Stanley and UBS are highly anticipated and could lead to a transformation in investment strategies by integrating digital assets into mainstream economics.