Morgan Stanley to Offer Bitcoin ETF Recommendations as Network Difficulty Hits All-Time High

Morgan Stanley's Wealth Advisers to Recommend Bitcoin ETFs to Clients Reports indicate that Morgan Stanley's 15,000 financial advisers will soon be able to suggest Bitcoin exchange-traded funds (ETFs) to their clients. The Bitcoin network difficulty has hit an all-time high, which is putting pressure on the mining community. Despite Grayscale's Ethereum Trust experiencing a $2 billion loss, inflows into Ethereum ETFs have turned positive again.

- Morgan Stanley financial advisers can recommend spot Bitcoin ETFs like BlackRock's iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to clients starting from August 7.

- This move is significant as Morgan Stanley manages approximately $3.75 trillion in client assets, expanding Bitcoin's reach beyond its traditional investor base.

- Bitcoin's network difficulty recently reached a new all-time high on August 1 at 90.66 trillion after a three-month decline, which could impact miners' earnings negatively.

- Ethereum ETFs have seen positive inflows despite Grayscale's Ethereum Trust facing significant outflows, with BlackRock’s iShares Ethereum Trust leading in net inflows on August 1.

- Morgan Stanley's financial advisers, numbering 15,000, will soon recommend spot Bitcoin ETFs to clients.

- From August 7, advisers can guide clients on investing in BlackRock's iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.

- This move is seen as a milestone for Bitcoin given Morgan Stanley's substantial client asset management of around $3.75 trillion.

- After a three-month decline in network difficulty, Bitcoin's computational power requirements surged to an all-time high on August 1 at 90.66 trillion.

- This increase of 14% could impact miners' earnings negatively in the near future.

- Despite Grayscale's Ethereum Trust experiencing outflows exceeding $2 billion, net inflows into US spot Ether exchange-traded funds have turned positive again.

- On August 1, eight recently approved spot ETFs recorded a net inflow of $28.5 million, with BlackRock’s iShares Ethereum Trust leading in inflows.

- Grayscale’s Ethereum Trust saw outflows of $78 million on the same day, totaling over $2 billion in cumulative outflows since its conversion to a spot fund.