Morgan Stanley: Bitcoin Could Be Included in US Bank Balance Sheets, But Still Time Needed

Odaily Planet Daily News: Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, stated that while Bitcoin could potentially be included in US bank balance sheets in the future, it still faces multiple obstacles such as regulatory and capital rules before it becomes a reality, including Federal Reserve policies, Basel requirements, and global regulatory coordination issues.

Oldenburg pointed out that as the regulatory environment gradually improves and client demand increases, Morgan Stanley is continuously building out its digital asset business. The firm recently launched MSBT, the first Bitcoin exchange-traded product (ETP) issued by a US licensed bank. It attracted over $100 million in inflows within just six days of launch, all from self-directed trading clients, and has yet to open up to advisory channels, demonstrating strong market demand.

She also indicated that there is still a significant gap between current client demand and advisor allocations. Morgan Stanley recommends clients allocate 2%-4% of their assets to Bitcoin, but advisor adoption has been slow, primarily hampered by a lack of knowledge and education. Currently, about 80% of ETP investments on the platform are carried out through self-directed trading.

At the industry level, BlackRock's spot Bitcoin ETF, IBIT, has amassed over $61 billion in assets under management since its launch in January 2024, becoming one of the fastest-growing ETFs in history, further validating institutional demand.

Additionally, Morgan Stanley is applying for a digital trust charter from the Office of the Comptroller of the Currency (OCC), which could enable crypto asset self-custody and spot trading services in the future. Currently, the MSBT product uses Coinbase and BNY Mellon as dual custodians. (CoinDesk)