- Morgan Stanley Wealth Management partners with Galaxy Digital to enable crypto-to-spot ETP share conversions for eligible investors.
- The program supports in-kind creation of shares like the Morgan Stanley Bitcoin Trust, reducing onboarding times by up to 75%.
- Galaxy lowers minimum lending requirements from $25M to $5M, expanding institutional access to crypto-linked investment products.
Morgan Stanley Wealth Management has introduced a referral arrangement with Galaxy Digital that allows eligible clients to exchange certain cryptocurrencies for shares of spot crypto exchange-traded products. The program, announced this week, supports in-kind creation of ETP shares, including the Morgan Stanley Bitcoin Trust (MSBT), while aiming to shorten onboarding times and expand access for qualified investors.
Galaxy Referral Model Expands Client Access
According to Morgan Stanley Wealth Management, the new process allows eligible clients to lend digital assets such as Bitcoin, Ether, and Solana to Galaxy. Galaxy then determines whether those assets can be settled through an in-kind creation process involving an Authorized Participant.
Once the transaction is completed, ETP shares are delivered into the client’s selected investment account. According to the announcement, the structure is designed for investors seeking to integrate digital assets with traditional portfolio management tools.
Morgan Stanley said the arrangement also gives clients access to margin and lending capabilities linked to those investment products.
Onboarding Times And Transaction Limits Change
The firms said the referral capability could reduce onboarding periods by as much as 75% in some cases. Current onboarding for these transactions can take more than four weeks.
At the same time, Galaxy lowered its minimum lending requirement for Morgan Stanley-referred clients. The threshold will drop from $25 million to $5 million for eligible participants.
According to Alison Nest, Head of Investment Solutions Products at Morgan Stanley Wealth Management, the referral capability provides clients with an institutional process for connecting digital assets with broader portfolio strategies.
Firms Outline Structure For Spot Crypto ETPs
Morgan Stanley said it will provide educational resources on digital assets while directing eligible clients to Galaxy’s platform. Galaxy will manage the lending process and coordinate the in-kind creation of ETP shares.
Zane Glauber, Global Head of Distribution at Galaxy, said the arrangement combines streamlined onboarding with lower transaction minimums for qualified clients.
The announcement specifically noted that the referral model covers spot crypto ETPs, including, but not limited to, the Morgan Stanley Bitcoin Trust.