Market analysts anticipate that Morgan Stanley's potential move to allow its 15,000 brokers to recommend Bitcoin exchange-traded funds (ETFs) to clients could inject new life into the Bitcoin ETF landscape. According to a report by AdvisorHub on April 24, Morgan Stanley, a financial powerhouse, had previously given the green light for BTC ETF purchases but only upon customer request. This meant that clients needed to take the initiative to explore this asset class with their advisors.

However, a potential shift in policy could see Morgan Stanley brokers actively promoting BTC ETFs, potentially boosting demand for these investment products. Yet, such a move also exposes the institution to potential legal implications. Consequently, Morgan Stanley is reportedly working on establishing clear guidelines, or "guardrails," for solicited purchases. These guidelines might involve risk assessment evaluations and limits on allocation and trading frequency.

An unnamed Morgan Stanley executive emphasized the importance of caution in this process, stating, "We’re going to make sure that we’re very careful about it…we are going to make sure everybody has access to it. We just want to do it in a controlled way." However, the executives did not provide a specific timeline for finalizing the policy review.

This potential shift by Morgan Stanley is seen as a significant development in the crypto industry, particularly following the early success of Bitcoin ETFs. Thomas Fahrer, co-founder of Apollo Sats, highlighted the significance of this change, noting the departure from Morgan Stanley's previous reserved stance: "This is a big change from their 'if they ask' approach, which is how they’ve managed ETF allocations thus far."

According to data from Farside Investors, spot bitcoin ETFs have collectively attracted a net inflow of $12.29 billion and manage over $53 billion in assets. However, recent trends suggest a decline in inflows, with reports indicating that BlackRock’s ETF saw no daily inflow for the first time since its inception on April 24.