Morgan Stanley joins Bitcoin ETF…"The most powerful bullish catalyst in history"

Morgan Stanley's direct entry into the Bitcoin (BTC) spot ETF market has been described as "the most powerful bullish catalyst in the history of virtual assets." Analysts say that the fact a global investment bank launched its own product belatedly despite leading players already dominating the market is evidence of how large the potential of the Bitcoin ETF market is.

On the 6th (local time), Jeff Park, a Bitwise advisor, said on his X account, "Most people are underestimating the significance of Morgan Stanley's launch of a Bitcoin spot ETF."

Park cited three reasons for his positive assessment of Morgan Stanley's move.

First is a market size much larger than expected. He explained that it is very unusual for a latecomer to enter two years after the market leader has captured liquidity in the financial products market.

He analyzed, "Although BlackRock's IBIT reached $80 billion in assets under management (AUM) at the fastest pace in history, it is important that Morgan Stanley has bet on the commercial viability of its own branded ETF," adding, "Morgan Stanley must have gained confidence through its wealth management channels that there is sufficient 'untapped demand' that has not yet been met."

Second is the change in Bitcoin's social standing. Park said, "Bitcoin has now become, beyond being a simple 'digital gold,' a socially important financial product that asset managers can offer to clients." He explained that for asset managers, merely holding their own Bitcoin ETF can help build an innovative and stylish brand image.

Third is the defensive nature from the platform economy perspective. The background to Morgan Stanley launching its own ETF includes a strategic judgment to block customer assets from flowing into competitors' products like BlackRock's and to prevent fees from leaking out.

Park said, "Morgan Stanley has acknowledged the harsh reality that distribution channels own customers more than product excellence," and evaluated, "From a pure AUM perspective, a late launch may seem irrational, but from a platform economy perspective it is an inevitable choice."

He added, "This case indicates that the total addressable market (TAM) of the virtual asset market is rapidly expanding and that Bitcoin's share as social capital has increased," and predicted, "A favorable environment will also be created for Bitwise, which has demonstrated competitiveness in Bitcoin and Solana (SOL) ETFs."