Morgan Stanley’s Bitcoin ETF on track to pull in $7bn in year one, says Ric Edelman

Morgan Stanley’s new Bitcoin exchange-traded fund looks set for a blockbuster debut year, said Ric Edelman, founder of the Digital Assets Council of Financial Professionals.

His forecast is based on the fund’s opening day performance on Wednesday that drew in $33 million in flows.

“That's a pace of $7 billion in the first year,” Edelman told DL News. “The flywheel is just starting to spin.”

For those wondering, Edelman is no stranger to finance. He’s the founder of Edelman Financial Engines, which manages nearly $300 billion for around 1.3 million clients. He’s commonly found on Barron’s list of the planet’s most important financial advisers, along with hosting a nationally syndicated radio show with more than one million weekly listeners.

So when he makes a prediction, Wall Street pays attention.

Morgan Stanley is the first Wall Street bank to offer Bitcoin exposure to its clients. The firm’s 16,000 financial advisers manage around $6.2 trillion in assets.

Three-way win

To reach that $7 billion target, Edelman reckons Morgan Stanley will attack the market from three angles.

First, it will drain assets from already-existing crypto ETFs as investors switch to Morgan Stanley because of its lower fees.

Second, fresh capital will pour in from clients who’ve been waiting for their trusted bank to offer Bitcoin.

Third, Morgan Stanley’s new ETF legitimises Bitcoin by making it an in-house branded product rather than just listing competitors’ funds, argued Edelman.

Wednesday’s $33 million debut is already auspicious.

“Combined, these will lead to broader adoption of crypto by investors nationwide,” he told DL News. 

Pedro Solimano is a markets correspondent with DL News. Got a tip? Email him at [email protected].