Morgan Stanley has become the first bank in the nation to offer access to bitcoin funds. Wealthy clients who meet specific criteria will get access according to an exclusive report from CNBC.
People with direct knowledge of the matter have said that the giant bank will launch access to three funds. This will enable wealthy clients to own bitcoins or cryptocurrencies p. Many clients had asked the bank to enable them to deal with cryptocurrencies.
According to an internal memo, Morgan Stanley bank is allowing its wealthier clients to deal with this volatile asset as it believes that they have “an aggressive risk tolerance.” Wall Street rallies have fueled this demand as many account holders have asked the bank to add it to their portfolios.
A client has to have at least $2 million in assets and an investment company has to have at least $5 million at the bank to qualify for these transactions. Accounts in both these categories have to be more than 6 months old.
The sources also added that there is a limit to investing in bitcoins and that limit is approximately up to 2.5% of the individual or the company’s net worth.
Three funds will be on offer and have the following minimum investments:
- The Galaxy Bitcoin Fund LP with a minimum investment of $25,000
- The Galaxy Institutional Bitcoin Fund LP with a minimum investment of $5 million
- The FS NYDIG with a minimum investment of $25,000
Morgan Stanley bank’s financial advisors are undergoing training courses to manage cryptocurrencies portfolios for their high net individuals. Wealth management divisions are gearing up to offer their wealthy clients the possibility of making such investments by April. The bank is said to have $4trillion in assets.
No other big bank in America is allowing advisers to offer cryptocurrency investments, as yet. There have no reports from the wealth division managers of Goldman Sachs, JP Morgan Chase or Bank of America. However, JP Morgan is exploring tie ups with MicroStrategy and Square, two firms that have cryptocurrencies on their balance sheets.
