Last week, Morgan Stanley introduced its spot Bitcoin exchange-traded fund, but the bank is already preparing for its next digital asset initiatives. The launch is a beginning rather than an end, according to Amy Oldenburg, the company’s head of digital-asset strategy.
“We’re not going to stop at just Bitcoin,” she stated to the press this week. “It’s really about the longer-term journey, and there’s quite a long way to go.”
According to Farside Investors, the recently listed ETF saw net inflows of almost $46 million during its initial trading days. Morgan Stanley has expanded its range of digital products beyond Bitcoin by submitting applications for ETFs linked to Ethereum and Solana.
The bank has a sizeable base from which to promote new products because it oversees $9.3 trillion in client assets.
Tokenised money-market funds are “definitely a path forward” for the company’s product strategy, according to Oldenburg. Yield-bearing tokens backed by short-term government assets are issued by these funds.
Although BlackRock’s BUIDL product has now grown to $2.3 billion and gained the lead, Franklin Templeton invented that idea in 2021. The total value of Fidelity’s Digital Interest Token is around $172 million.
Parametric, a division of Morgan Stanley, oversees rules-based investing methods, such as tax-loss harvesting for conventional portfolios. Using a comparable strategy for digital assets, according to Oldenburg, is “something to also explore”.
By selling losing positions to offset capital gains, investors can lower their overall tax liability through tax-loss harvesting.
Last year, the bank authorised its more than 15,000 wealth advisors to suggest third-party spot Bitcoin ETFs to qualified customers, particularly those managed by Fidelity and BlackRock.
The first significant wirehouse to provide advisors that access was Morgan Stanley. According to Oldenburg, the recently introduced ETF will probably serve as a commercial entry point, and over time, more specialised products will be developed around it.
There are already other initiatives in progress. Last year, Morgan Stanley announced plans to use Zerohash’s technology to provide cryptocurrency trading through E*TRADE. Oldenburg stated in February that the bank is also considering lending and yield services based on Bitcoin.
The bank undercuts the majority of competitors in the industry with its expense ratio of 0.14% on its spot Bitcoin ETF.
Source: X.com
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