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Bitcoin The Almighty Buck

Morgan Stanley Becomes First Big US Bank To Offer Its Wealthy Clients Access To Bitcoin Funds (cnbc.com) 80

Posted by BeauHD from the acceptance-of-bitcoin dept.
According to CNBC, Morgan Stanley is the first big U.S. bank to offer its wealth management clients access to bitcoin funds. From the report: The investment bank, a giant in wealth management with $4 trillion in client assets, told its financial advisors Wednesday in an internal memo that it is launching access to three funds that enable ownership of bitcoin, according to people with direct knowledge of the matter. The move, a significant step for the acceptance of bitcoin as an asset class, was made by Morgan Stanley after clients demanded exposure to the cryptocurrency, said the people.

But, at least for now, the bank is only allowing its wealthier clients access to the volatile asset: The bank considers it suitable for people with "an aggressive risk tolerance" who have at least $2 million in assets held by the firm. Investment firms need at least $5 million at the bank to qualify for the new stakes. In either case, the accounts have to be at least 6 months old. And even for those accredited U.S. investors with brokerage accounts and enough assets to qualify, Morgan Stanley is limiting bitcoin investments to as much as 2.5% of their total net worth, said the people.

Two of the funds on offer are from Galaxy Digital, a crypto firm founded by Mike Novogratz, while the third is a joint effort from asset manager FS Investments and bitcoin company NYDIG. The Galaxy Bitcoin Fund LP and FS NYDIG Select Fund have minimum investments of $25,000, while the Galaxy Institutional Bitcoin Fund LP has a $5 million minimum. Clients can likely make investments as early as next month, after the bankâ(TM)s financial advisors complete training courses tied to the new offerings, said the people.
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Morgan Stanley Becomes First Big US Bank To Offer Its Wealthy Clients Access To Bitcoin Funds More

Morgan Stanley Becomes First Big US Bank To Offer Its Wealthy Clients Access To Bitcoin Funds

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  • ..are soon parted.

    • Time to buy stock in Morgan Stanley then because that's where the "fools" money is headed.

      • Yup - when your bank is ripping you off with user fees and whatnot, buy its shares and stop complaining about the rip-off.
    • The fools are sailing the Caribbean in their private yachts while all the genius nocoiners keep sitting in their nine-to-five cubicles reading Slashdot.
  • On the 100% exact opposite site of things, coinstar machines (which are usually inside Walmart) sell bitcoins. Odd considering the $20.50 transaction fee. I dunno, maybe it recommended litecoin or credits your coinbase account outside the blockchain or something. Litecoin transaction fee is $0.03 btw. It's what everyone really ought to be using.
  • So much for decentralized.

    Cryptocurrency is yet another lever for the super-rich to print more money with.

    • Re: (Score:2)

      by MrL0G1C ( 867445 )

      And show once more that they don't give a shit about the environment.

    • The point of bitcoin is that the government can't prevent anyone from paying money to anyone. They can still catch them later, but they can't prevent the transaction.

    • Comment removed based on user account deletion

    • Re: (Score:2)

      by leonbev ( 111395 )

      On the flip side, now that the 1%ers will have Bitcoin as well, we don't have to worry as much about the US government banning it like they're doing in India and China. Folks like Morgan Stanley can buy lobbyists to prevent that from happening.

  • to be working, so far. The next 5 years or so are critical for adoption, if the price volatility steadies people will trust it's value more. It costs so little to take delivery it should be able to destroy any shenanigans from financial engineering (like in the precious metals market). This bodes well for real price discovery.

    • > if the price volatility steadies people will trust it's value more.

      It's mathematically impossible for the price to stabilize and for people to want it more.

      The fed increased the supply of dollars by 24% over last year in order to stabilize the price/value of the dollar. People wanted more dollars (higher demand). Price is determined by the ratio of supply and demand. When demand goes up, the price goes up unless supply goes up equally.

      That's important enough to say again - if the desire for X goes up

      • You have a source on that dollar supply story? Seems to be a Fox News talking point.

        • Well I suppose the fed itself is the ultimate authoritative source:

          https://fred.stlouisfed.org/se... [stlouisfed.org]

          Or just Google "US money supply" and take your pick.

      • Comment removed based on user account deletion

        • Lol no, I just didn't ditch economics class.
          I understand that when people want some more, they are willing to pay more for it. When they don't want it as much, they aren't willing to pay as much for it. That's really just common sense.

          Economists use the term "increased demand", all that means is "if you want it more, you'll be willing to pay more to get it". Pretty straightforward, when you think about it.

          • Comment removed based on user account deletion

            • So the part you believe is false is you believe the supply of Bitcoin increases as necessary to meet demand?

              • Comment removed based on user account deletion

                • Again, what do you think is wrong?
                  It's pretty simple, really. When people want something more, they are willing to pay more for it.

                  It sounds like perhaps you simply don't like that fact, because you wish it were mathematically possible for more people to want more Bitcoin, without that having any effect on the price.

                  Unfortunately, wishes don't change reality.

      • It can NEVER work as currency, because the value can never be stabilized by matching the supply to the demand.

        That demolishes the idea of making BTC worth something by making it difficult to produce. The whole mining this is a complete farce, and criminally wasteful at that. The artificial scarcity of BTC makes it perfect fodder for speculators, with ludicrous price tags to go with that. For example, the paintings of Pablo Picasso are a limited resource, on account of him being dead. That does not make Picasso's paintings especially valuable, but if you want a genuine Picasso, and have lots of money, then the sky i

        • Well yeah. My autograph is rare. And completely without value.

          It's true that in order to have a high price, a thing must be non-trivial to produce, but that's a necessary condition, not a sufficient one. It must also be useful, there must be some benefit to having it.

          Bitcoin, due to its design, can never, ever be useful *as a currency*. Unless it's useful for something else, it truly has no value, and the price will eventually reflect that fact. Eventually.

    • Re: (Score:1)

      by leonbev ( 111395 )

      Bitcoin has already failed as a currency. The transaction times are slow, the transaction fees are high, and the price instability makes it useless for anything requiring a long term contract.

      It seems to have found its niche as "digital gold", though. Like gold, as long as it keeps going up in value people will keep hording it.

      • Bitcoin is already succeeding! (Score:1)

        by Anonymous Coward
        It’s absurd how nocoiners say that people like @michael_saylor or @elonmusk are making a “Bet” on Bitcoin.

        They made calculated decisions based on publicly available facts and research.

        Nocoiners, having done no meaningful research, are the ones placing a bet AGAINST #Bitcoin
        https://twitter.com/BVBTC/stat... [twitter.com] .
    • Mining is how transactions are processed. What happens when mining becomes unprofitable? What happens when the coins run out and mining becomes simply transaction processing?

      I have been told that transaction times will increase with increasing fees to process the transaction faster. What happens when it costs $50.00 to process a $100 transaction in a week? Do you think it will be working so well?

      if the price volatility steadies people will trust it's value more

      Bitcoins have zero true value. They are not hard money like precious metals. They are simply numbers generated

      • Gold has no future as money! (Score:1)

        by Anonymous Coward
        Silver is already fully demonetized, it began with the Gold Standard: https://twitter.com/saifedean/... [twitter.com]

        Gold was successfully attacked by the state after the end of the Classical Gold Standard (WWI): Executive Order 6102...

        What the central banks didn't realize is that if you demonetize the worlds preferred money (gold) you'll be left holding the bag when the world moves onto something better.
        https://twitter.com/heavilyarm... [twitter.com]

        If you can't understand that Bitcoin is 1000x better than Gold, you know no

  • There is so much cheap money flooding in the system that there is nowhere to go, anything that looks remotely like an investment will be invested in.

    The disaster that may come when this ends will be a once-in-a-lifetime spectacle.

  • To Offer Its Wealthy Clients Access To Bitcoin Funds

    So, confirmation that it's, once again, a thing for the 1%.

    • Comment removed based on user account deletion

    • So, confirmation that it's, once again, a thing for the 1%.

      Actually, I read this as a crafty way to cream a chunk of commission out of wealthy clients who do not know what to do with their money. Carry on, I say. It all helps to fuel the pyramid scheme. The whole point is to get more and more people buying into the scheme, and preferably more wealthy people.

  • Plumbers have been making money off the blockeddrain for years.

  • That dirty money. Plenty of it in Morgan Stanley's vaults.

  • I am thinking that Morgan Stanley bought a lot of bitcoin, and is beginning to realize that the price isn't going to go up forever, nor is it going to stay at current heights.

    Which means they're looking for some wealthy suckers, and having the financial records of their clients to hand, know where to look....

    • This is the USD which is crashing! (Score:1)

      by Anonymous Coward
      Morgan Stanley is wiser than you. They have understood that Bitcoin has no top because the USD has no bottom!

      The suckers are the ones who are still using the USD for their savings!
  • The new funds they will be offering include the Global Organized Crime Fund, The Smugglers International Growth Fund, the Tax Haven Fund, and The Hidden Corporate Profits Fund.
  • One of the prominent names for IT courses is https://ultimateitcourses.ca/ [ultimateitcourses.ca], which has experts from all three fields to help you first decide and then excel in your chosen profession. Also, right now you can get a good discount if you will use this promo IUPROMO2021

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