Morgan Stanleys Bitcoin ETF Launch May Trigger Stringent Regulatory Scrutiny

Former Securities and Exchange Commission (SEC) official John Reed Stark has warned Morgan Stanley against offering its clients a physical Bitcoin ETF. Stark criticized the move, stating that it could result in unprecedented scrutiny from the SEC and the Financial Industry Regulatory Authority. Last week, major financial institution Morgan Stanley began rolling out BTC ETFs, marking a significant step for institutional adoption of cryptocurrencies. Stark argues that this decision carries risks, as the bank’s 15,000 brokers offering Bitcoin investments could trigger strict regulatory scrutiny. He notes that regulatory bodies will thoroughly examine all Bitcoin transaction records, potentially uncovering any violations. Stark concluded his warning with a sarcastic remark about the bank’s compliance team. Read more: [image] The total capital outflow from US cryptocurrency ETFs exceeds $10.5 billion. On February 2, Morgan Stanley allowed its advisors to offer Bitcoin ETFs from BlackRock and Fidelity to wealthy clients. As a result, BTC ETFs saw a significant influx of funds, with iShares alone adding 2,641 BTC worth $15.957 billion, bringing its total value to around $2.1 billion. [image]