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In a move reflecting the growing acceptance of digital assets by major financial institutions, Morgan Stanley has started offering loans against spot Bitcoin ETF holdings. According to reports, the bank is applying a 50% loan-to-value (LTV) ratio to these credit facilities. This initiative aims to provide liquidity to both institutional and retail investors without requiring them to liquidate their positions in spot ETFs.
This development comes as major Bitcoin ETF providers like BlackRock and Fidelity compete for institutional flows, with BlackRock's IBIT fund surpassing $20 billion in assets under management earlier this year per market data. This move positions Morgan Stanley at the forefront of investment banks integrating traditional lending services with regulated crypto instruments, further cementing ETFs as mature financial assets.
Regarding price levels, Morgan Stanley (0QYU.L) stood at $214.66 at close June 12, 2026, after reaching an intraday high of $217.73. Investors are monitoring further commentary from Federal Reserve officials, following the Fed Barr speech on June 6, to gauge how borrowing costs might impact the demand for asset-backed lending.
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