Former SEC official John Reed Stark has warned Morgan Stanley not to offer its clients a physically-backed Bitcoin ETF. Stark criticized the move, suggesting that it could lead to unprecedented scrutiny from the SEC and the US Financial Industry Regulatory Authority. Last week, major financial institution Morgan Stanley began rolling out its BTC ETF, marking a pivotal step in institutional adoption of cryptocurrencies. Stark argues that this decision carries risks, as the bank’s 15,000 brokers offering Bitcoin investments could attract rigorous regulatory review. He notes that regulatory bodies will thoroughly examine all Bitcoin transaction records, potentially uncovering violations. Stark concludes his warning with a sarcastic “good luck” to the bank’s compliance team. Read more: [img] Total outflow from US cryptocurrency ETF exceeds $10.5 billion On February 24, Morgan Stanley allowed its advisors to offer clients Bitcoin ETFs from BlackRock and Fidelity. As a result, the BTC ETF saw a significant influx of funds, with iShares alone adding 2,641 BTC worth $15.957 billion, bringing its total value to about $2.1 billion. [img]
