Morgan Stanley told its wealth managers last Wednesday that it will allow certain clients access to bitcoin funds.
Two of the three funds on offer are from billionaire Mike Novogratz’s crypto firm Galaxy Digital and the other is a joint effort from NYDIG and FS Investments.
The minimum investments for Galaxy Bitcoin Fund LP and Galaxy Institutional Bitcoin Fund LP are $25,000 and $5 million, respectively, and the minimum for the FS NYDIG Select Fund is $25,000. The catch? Morgan Stanley is restricting access to clients with at least $2 million in the bank. In addition to this, the bank is limiting investments to 2.5% of a client’s net worth.
This isn’t the first move Morgan Stanley has made into crypto. They recently bought a 10% stake in MicroStrategy, which holds over $5 billion in bitcoin. They join a number of players in the traditional financial services space dipping their toes in the crypto pool. BlackRock CIO this week said the asset manager is “dabbling” in potential bitcoin offerings, while Goldman Sachs recently announced the reopening of its crypto trading desk and plans to resume dealing in bitcoin futures.