Morgan Stanley’s Quest to Become First Bitcoin ETF Bank, Overtaking UBS

The introduction of Bitcoin exchange-traded funds (ETFs) in the United States has sparked a competition among investment banks to be the first to offer this product. Morgan Stanley is aiming to beat UBS in becoming the first wirehouse to fully approve a Bitcoin ETF, according to a report by crypto enthusiast Andrew P. (AP Abacus) on April 3. The report cites internal notes from Morgan Stanley, suggesting that the bank may announce its move into Bitcoin ETFs just a few days before actually adding them. It also mentions that global banks have been actively discussing the addition of Bitcoin ETFs as a race.

Bloomberg ETF expert Eric Balchunas further adds to AP Abacus’ report, stating that neither Morgan Stanley nor UBS have yet added Bitcoin ETFs, according to a reliable source. Balchunas suggests that both banks are currently in a holding pattern, playing a compliance game of chicken, waiting for one of them to make the first move. He predicts that when one of them finally does add Bitcoin ETFs, the rest will quickly follow suit.

Prior to this update, AP Abacus had previously reported that UBS plans to add Bitcoin ETFs to its platform sometime between April 8 and April 12. The speculation about Morgan Stanley’s rival move against UBS comes just a few weeks after AP Abacus stated that the bank was set to approve Bitcoin ETFs within the next two weeks. Both Morgan Stanley and UBS have not provided any official comment regarding the potential addition of spot Bitcoin ETFs to their platforms.

The launch of Bitcoin ETFs in the US has created a sense of competition between investment banks, particularly Morgan Stanley and UBS, as they aim to be the first wirehouse to offer this product. Morgan Stanley is hoping to beat UBS in becoming the first to fully approve a Bitcoin ETF, as suggested by internal notes. The banks have been actively discussing this move, and it seems that the first one to make the move will prompt others to follow suit. While there have been reports about UBS planning to add Bitcoin ETFs to its platform, Morgan Stanley’s potential rival move remains uncertain at this point.