Morgan Stanley’s E*TRADE reportedly considering cryptocurrency trading amid regulatory shift

Multinational funding financial institution and monetary companies firm Morgan Stanley is reportedly considering plans to launch cryptocurrency trading companies via its E*TRADE arm amid an anticipated extra favorable regulatory atmosphere underneath the incoming second Trump administration.

The information was first reported by The Info, which claims that the plans are nonetheless within the exploratory part.

Morgan Stanley acquired E*TRADE for $13 billion in 2020. The service at the moment affords oblique publicity to cryptocurrencies via funding merchandise reminiscent of futures, exchange-traded funds and shares associated to digital belongings. A few of the choices at the moment out there on E*TRADE embody the Grayscale Bitcoin Belief and the ProShares Bitcoin Technique ETF.

Ought to E*TRADE proceed with direct cryptocurrency trading companies, it might place the agency as one of many largest conventional monetary establishments to enter the digital asset trading area. However it’s a slight case of deja vu, because it isn’t the primary E*TRADE has thought of providing cryptocurrency trading. Previous to its acquisition by Morgan Stanley, the then independently owned ETrade Monetary Corp. was additionally considering providing assist for cryptocurrency in 2018, however rules and its eventual acquisition bought in the way in which.

The choice, some seven years later, for E*TRADE as soon as once more to think about getting into the cryptocurrency trading market comes as a change in president guarantees a extra favorable regulatory atmosphere for digital belongings. As famous by Crypto Briefing, the incoming Trump administration has signaled a pro-crypto stance, aiming to place the U.S. as a pacesetter within the cryptocurrency market.

E*TRADE’s renewed curiosity in providing direct cryptocurrency trading companies may also be argued to replicate a strategic response to not solely the anticipated regulatory assist but in addition rising demand for digital belongings amongst buyers. By opening its books and companies to cryptocurrencies, E*TRADE, and therefore father or mother firm Morgan Stanley, enhances its aggressive place versus different conventional companies that don’t supply cryptocurrency companies.

Ought to Morgan Stanley, via E*TRADE, enter the cryptocurrency enterprise, the providing will even current a big problem to present main gamers within the U.S., reminiscent of Coinbase World Inc. and Robinhood Markets Inc. Although competitors is great for the buyer, it isn’t so good for present gamers, notably when the brand new competitors is owned by one of many world’s largest banks, with a market cap of $201 billion.

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