US investment bank Morgan Stanley, which manages $ 4 trillion in assets, will provide its clients with access to three bitcoin-based funds, but with certain restrictions.
According to media reports, we are talking about two funds owned by the cryptocurrency company Mike Novogratz Galaxy Digital: Bitcoin Fund LP and Institutional Bitcoin Fund LP. The funds accept investments from $ 25,000. The FS NYDIG Select Fund, launched by NYDIG and FS Investments, will also participate in the initiative. The minimum investment in this fund is from $ 5 million.
Morgan Stanley’s management has made the decision to provide its clients with access to bitcoin, since it is observing a great interest in cryptocurrencies on their part. In addition, due to the rise in the bitcoin rate, many Wall Street companies are also beginning to think about investing in this crypto asset. A few months ago, Morgan Stanley chief strategist Ruchir Sharma stated that Bitcoin could overtake the US dollar in payments.
However, Morgan Stanley will only provide access to bitcoin to high net worth clients who can withstand the fall in value. Given the high volatility of bitcoin, the bank considers this digital asset suitable for clients who have transferred at least $ 2 million to the bank’s management. As for investment firms, they need to keep at least $ 5 million in the bank.
In addition, Morgan Stanley customer accounts must be serviced by a bank for more than six months. Even for accredited investors with brokerage accounts, Morgan Stanley has set limits – such investors can invest in Bitcoin no more than 2.5% of the total value of their assets. It is expected that this will become possible as early as next month, after the bank employees undergo the necessary training.
Новограц
confirmed on Twitter for information about the collaboration with Morgan Stanley, writing that it will be the first American bank to provide its wealthy clients with the option of direct investment in bitcoin. This move will help ensure that bitcoin is widely seen as a separate emerging asset class.
Recall that last fall, Novogratz recommended investing in bitcoin at least 3% of the investment portfolio and keeping the first cryptocurrency at least until 2025.
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