US investment bank Morgan Stanley could also be positioning itself in order that despite poor performance, its newly announced spot Bitcoin exchange-traded fund will still deliver strategic advantages for all the company, based on Jeff Park, chief investment officer of ProCap.
“Morgan Stanley believes there’s an intangible advantage that may help them strengthen their firepower even when their ETF doesn't result in blockbuster success,” Park said Wednesday.
His comments come only a day after Morgan Stanley filed with the U.S. Securities and Exchange Commission to launch two ETFs, one tied to Bitcoin (BTC) and the opposite to Solana (SOL).
Crypto market “much greater” than expected
Park said that no matter the importance of the inflows to Morgan Stanley's latest products, the move would bring social, reputational and financial advantages.
Source: Jeff Park
He pointed to Morgan Stanley's “focused attention” on monetizing its brokerage subsidiary ETRADE through crypto trading and tokenization partnerships.
“This becomes particularly relevant as a positive externality if it helps recruit top talent over competitors,” Park said.
Park said the announcement shows that the crypto market is “much greater” than crypto industry professionals expected. “Especially to achieve latest customers,” he said.
He also argued that one other factor beyond performance is the reputational advantage that the spot Bitcoin ETF gives the corporate by making it look pro-Bitcoin.
“That’s because every asset manager knows that owning a Bitcoin ETF signals that they’re forward-looking, young and a bit nervous,” Park said.
“Others could follow,” says an ETF analyst
Morningstar ETF analyst Bryan Armor told Reuters on Tuesday that Morgan Stanley's sudden move into the cryptocurrency could mean the firm is seeking to “move clients who spend money on Bitcoin into their ETFs, which could give them a fast start despite their late entry.”
“A bank entering the crypto ETF market gives it legitimacy, and others may follow,” Armor said.
Morgan Stanley is taken into account one in every of the three largest investment banks on the earth, alongside Goldman Sachs and JPMorgan. While the opposite two corporations have crypto investment relationships, neither offers its own crypto ETF.
