Peter David Schiff, an American stockbroker cum CEO and chief global strategist of Euro Pacific Capital said he has an explanation why Morgan Stanley offers exposure to Bitcoin and other cryptocurrencies for only a small percentage of clients.
Morgan Stanley limiting crypto access to 2.5% of high net worth individual accounts, that have over $2 million in assets and have been active for over six months, shows that the bank realizes #Bitcoin is very risky and wants to limit legal liability from investors who lose money.
— Peter Schiff (@PeterSchiff) March 17, 2021
Morgan Stanley offers Bitcoin exposure to a small number of customers, BTC critic Peter Schiff seems delighted about that
The powerful banking organization Morgan Stanley officially agreed to Bitcoin. Morgan Stanley will provide clients with access to Bitcoin investments, albeit only under specific conditions. The wealth management giant with $ 4 trillion in assets says it is launching access to three funds that allow ownership of Bitcoin, for those with first-hand knowledge of the matter. The opportunity is expected to open in April this year.
Participants in Morgan Stanley’s asset management division may have access to Bitcoin through Galaxy Digital’s Bitcoin Fund LP and Institutions Bitcoin Fund LP, as well as FS Investments’ FS NYDIG’s choice fund, despite its allocation. is limited to 2.5% of total assets per customer.
It is known that a company must have a minimum of $ 5 million in its bank account and at least half a year old to access this investment method. However, they can only allocate 2.5% of their net worth using the world’s leading cryptocurrency. New investors must place a minimum of $ 5 million in an institutional trust run by Galaxy Digital and at least $ 25,000 in the Galaxy Bitcoin Fund or FS NYDIG Select Fund. The maximum number of 2.5% of the net value allowed for investment greatly limits the number of investors.
Peter Schiff took to Twitter to share his views on why the major global bank limits Bitcoin investments to only 2.5% of its clients’ net worth. Schiff believes that Morgan Stanley realized how risky and volatile Bitcoin investing was and, therefore, wanting to limit the liability from investors who could lose money because of it.
After falling from $ 61,800 on Sunday due to a massive sell-off, Bitcoin started to recover on Wednesday after Fed Chairman Jerome Powell announced that the Bank of America would not raise interest rates until the end of 2023. Earlier today, the leading cryptocurrency rose to the zone of $ 59,600. As of now, however, BTC is down and is changing at $ 58,073 at press time.