AdvisorHub reported on April 24 that Morgan Stanley is considering allowing its 15,000 brokers to recommend Bitcoin (BTC) exchange-traded funds (ETFs) to clients. Initially, the financial giant permitted BTC ETF purchases upon approval earlier in the year, but only if initiated by customers who proactively engaged with advisors to explore this asset class.

Now, there's contemplation about enabling brokers to actively promote BTC ETFs, potentially boosting demand for these investment vehicles, albeit with added exposure to legal implications. The institution is working on establishing clear guidelines, including risk assessments and trading limits, for solicited purchases.

An unnamed Morgan Stanley executive emphasized cautiousness, stating a controlled approach to ensure broad access while managing risks. No specific timeline was provided for finalizing the policy review. Market analysts view this potential shift as favorable for the crypto industry, given the early success of Bitcoin ETFs.

Thomas Fahrer of Apollo Sats highlighted the significance of this change from Morgan Stanley's previous reserved stance. Despite the success of spot bitcoin ETFs, recent trends indicate a decline in inflows, as evidenced by BlackRock's ETF experiencing no daily inflow for the first time since its inception on April 24, according to CryptoSlate Insight.