Morgan Stanley’s Bitcoin ETF has ‘intangible benefit’ outside of flows: Exec

US concern slope Morgan Stanley whitethorn beryllium positioning itself truthful that adjacent if its recently announced spot Bitcoin exchange-traded money (ETF) underperforms, it volition inactive present strategical benefits crossed the firm, according to ProCap main concern serviceman Jeff Park.

“Morgan Stanley is making the stake that adjacent if their ETF doesn't standard to blockbuster success, there's an intangible payment that volition assistance physique their clout,” Park said connected Wednesday.

It comes conscionable a time aft Morgan Stanley filed with the US Securities and Exchange Commission to motorboat 2 ETFs, 1 tied to Bitcoin (BTC) and the different to Solana (SOL).

Crypto marketplace “much bigger” than believed

Park said that nary substance however important the inflows are for Morgan Stanley’s caller products, the determination volition bring social, reputational, and fiscal benefits.

Source: Jeff Park

He pointed to Morgan Stanley’s “focused attention” connected monetizing its brokerage subsidiary ETRADE done crypto trading and tokenization partnerships.

“This becomes particularly much applicable arsenic a affirmative externality if it helps enlistee apical endowment vs competitors,” Park said.

Park said the announcement shows that the crypto marketplace is “much bigger” than crypto manufacture professionals anticipated. “Especially to scope caller customers,” helium said.

He besides argued that different origin beyond show is the reputational borderline the spot Bitcoin ETF gives the steadfast by making it look pro-Bitcoin.

Related: Bitcoin faces ‘boring sideways’ grind successful coming months: CryptoQuant CEO

“This is due to the fact that each plus manager knows that having a Bitcoin ETF communicates that they are guardant thinking, young, and a small edgy,” Park said.

“Others could follow,” says an ETF analyst

Morningstar ETF expert Bryan Armour told Reuters connected Tuesday that Morgan Stanley’s abrupt determination into crypto whitethorn mean it wants to “move clients that put successful Bitcoin into their ETFs, which could springiness them a accelerated commencement contempt their precocious entrance.”

"A slope entering the crypto ETF marketplace adds legitimacy to it, and others could follow,” Armour said.

Morgan Stanley is considered 1 of the world’s apical 3 concern banks, alongside Goldman Sachs and JPMorgan. While the different 2 firms person crypto concern ties, neither offers its ain crypto ETF.

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