The move lets clients borrow against spot Bitcoin ETF positions, extending traditional securities-backed lending into a newer crypto-linked investment product.
Morgan Stanley is now allowing clients to take out loans against their spot Bitcoin ETF holdings, Amy Oldenburg said. The development means the bank is treating those positions as collateral in a securities-backed lending arrangement, giving investors a way to access liquidity without immediately selling their ETF exposure. The source provides no further details on eligible products, loan terms, or which clients may qualify.