Wall Street giant Morgan Stanley is reportedly in the process of evaluating the possibility of adding spot bitcoin ETF products to its brokerage platform. Since spot bitcoin ETFs were approved for introduction in the U.S. in January, interest in these products has been growing within the investment community.

Morgan Stanley, one of the largest U.S. broker-dealer platforms, is considering offering spot bitcoin ETFs to its clients, in line with the recent approval from the Securities and Exchange Commission. While billions of dollars have already been invested in these products, the expectation is that more investment will flow in once big registered investment advisor (RIA) networks and broker-dealer platforms, like those at Merrill Lynch, Morgan Stanley, and Wells Fargo, begin to offer these products.

At present, there are 10 spot bitcoin ETFs actively trading in the U.S., with popular options being Grayscale's GBTC, BlackRock's IBIT, and Fidelity's FBTC. The specific ETFs that Morgan Stanley may choose to offer its clients remain undisclosed.

Morgan Stanley, known for its leadership in alternative investments and private markets with over $150 billion in assets under management, is no stranger to the crypto space. In 2021, the bank became the first major U.S. bank to provide its wealthy clients with access to bitcoin funds, confirming during its first-quarter earnings call that exposure to bitcoin was available through external crypto funds.

Jonathan Pruzan, the wealth management firm's former CFO, had stated in the past that as interest grew, Morgan Stanley would collaborate with regulators to provide appropriate services. The bank is known to have offered access to passive funds from entities such as Galaxy Digital and NYDIG.

While Morgan Stanley declined to comment on this current evaluation process, the potential addition of spot bitcoin ETFs to its brokerage platform could further solidify the institution's position in the evolving cryptocurrency investment landscape.