2024

Bitcoin ETF

Bitcoin

Morgan Stanley, the biggest wealth manager in the U.S., is facing potential regulatory scrutiny after allowing its financial advisers to recommend spot Bitcoin exchange-traded funds (ETFs) to clients.&nbsp; 
On August 9, John Reed Stark, a former U.S. Securities and Exchange Commission (SEC) official voiced his concerns on social media platform X (formerly Twitter), saying 
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 Morgan Stanley’s Death Wish I worked in the SEC Enforcement Division for almost 20 years, the last 11 as Chief of the SEC’s Office of Internet Enforcement, and I have taught advanced securities regulation courses at both Georgetown and Duke Law Schools for 20 years — and my…— John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1821924270638796847?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 9, 2024</a>
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“By unleashing its legion of 15,000 brokers to pitch Bitcoin, Morgan Stanley has just voluntarily subjected themselves to what will likely become the largest SEC and FINRA examination sweep in history.”&nbsp; 
Stark, who has been critical of cryptocurrency in the past, believes the company’s decision could lead to significant regulatory challenges. 
He pointed out that both the SEC and the Financial Industry Regulatory Authority (FINRA) will now have easy access to Morgan Stanley’s internal communications, including documents, emails, and phone calls related to Bitcoin ETF sales. He also noted that regulators could quickly obtain this information either through a request or during an unannounced inspection. 
The criticism comes after reports that Morgan Stanley authorized its 15,000 financial advisers to start recommending spot Bitcoin ETFs to high-net-worth clients on Aug 7. The firm is currently backing two specific ETFs: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. 
Experts in the industry think that Morgan Stanley’s decision could lead to increased investments in Bitcoin. Haseeb Qureshi, a managing partner at the crypto venture fund Dragonfly, mentioned that we could see a rise in investment inflows later this year.&nbsp; 
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 This is huge. Currently all of the private wealth advisors are "reverse inquiry only", meaning they are not allowed to market the BTC ETF to their clients. That's only now changed. Expect to see some chunkier inflows in the second half of the year. <a href="https://t.co/OcTe9HunM8" target="_blank">https://t.co/OcTe9HunM8</a>— Haseeb ＞|＜ (@hosseeb) <a href="https://twitter.com/hosseeb/status/1819481290233790656?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 2, 2024</a>
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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/08/10/cboe-re-files-bitcoin-etf-options-application/" target="_blank" rel="noreferrer noopener">Cboe Re-Files Bitcoin ETF Options Application</a> 
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Morgan Stanley Faces Scrutiny Over Bitcoin ETF Push

The Crypto Times

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