Morgan Stanley: Bitcoin May Be Included in US Bank Balance Sheets, But Still Needs Time

Odaily Planet Daily News Morgan Stanley's Head of Digital Assets Strategy, Amy Oldenburg, stated that Bitcoin could potentially be included in the balance sheets of US banks in the future, but still faces multiple obstacles, including Federal Reserve policies, Basel Accord requirements, and global regulatory coordination issues, before it becomes a reality.

Oldenburg pointed out that as the regulatory environment gradually improves and client demand increases, Morgan Stanley is continuously expanding its digital asset business. The bank recently launched MSBT, the first Bitcoin exchange-traded product (ETP) issued by a US licensed bank, which attracted over $100 million in inflows within just 6 days of listing. All of this came from self-directed trading clients, and it has not yet been opened to the advisory channel, demonstrating strong market demand.

She also mentioned that there is still a clear gap between current client demand and advisor allocation. Morgan Stanley recommends clients allocate 2%-4% of their assets to Bitcoin, but advisor adoption has been slow, mainly constrained by a lack of understanding and education. Currently, about 80% of ETP investments on the platform are made through self-directed trading.

At the industry level, BlackRock's spot Bitcoin ETF, IBIT, has amassed assets exceeding $61 billion since its launch in January 2024, making it 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 potentially allow for crypto asset self-custody and spot trading services in the future. Currently, the MSBT product uses Coinbase and BNY Mellon as dual custodians. (CoinDesk)