The American bank would compete with Coinbase.
E-Trade was acquired in 2020 when it added 5 million new clients.
Morgan Stanley subsidiary E-Trade is considering expanding its product offering to include trading services for bitcoin (BTC) and other digital assets. This amid growing interest from the financial sector in cryptocurrency trading around the world.
Online trading firm E-Trade Financial Group, acquired by Morgan Stanley in 2020, brought five million new clients to one of the largest banking institutions in the United States. Offers a wide range of traditional investment products such as bonds, stocks, index funds and now exploring the possibility of offering trading services with bitcoin and other digital assetsaccording to a report of The Information.
Morgan Stanley acquired E-Trade Financial Group in 2020, bringing five million new clients to the banking institution that had previously shown a cautious approach to cryptocurrencies. It recently began to show a paradigm shift in response to market demand.
In itself, the financial firm published a report in the last quarter of 2023 that details the “four seasons” that cryptocurrency prices go through, according to the behavior of bitcoin. And, in that document, he warned that the market may be facing one of the most attractive moments for investorsas reported by CriptoNoticias.
Despite growing interest in bitcoin and other crypto assets, E-Trade to date has not provided direct cryptocurrency trading services, although it does offer exposure to digital assets through indirect investment products such as the Grayscale Bitcoin Trust (GBTC) ETFs. and ProShares Bitcoin Strategy ETF (BITO).
If E-Trade introduces trading with bitcoin and other digital assets, could become one of the largest companies among traditional financial institutions who have entered the cryptocurrency market. With this, it would have the potential to compete directly with existing exchanges such as Coinbase, one of the most popular in the United States.
Morgan Stanley has anticipated that its foray into the cryptocurrency market could have a significant impact in the United States. Previously, the company reorganized its investment strategy, diversifying its BTC ETF offering. Furthermore, its holdings in the various bitcoin ETFs confirm that it remains holder (long-term investor) of these financial instruments.
This move comes in a context in which the cryptocurrency industry in the United States is gaining momentum, driven by the expectation of a more favorable regulatory environment under the administration of President Donald Trump. Trump’s stance toward friendlier regulations for bitcoin and other crypto assets is a key factor that appears to be influencing the decisions of Morgan Stanley and other companies in the sector.
