Morgan Stanley launched IBIT structured notes, allowing you to participate in Bitcoin fluctuations with limited exposure.

Morgan Stanley ( has recently launched a structured note linked to the BlackRock Bitcoin ETF IBIT, with a scale of 104 million USD, primarily targeting high-net-worth clients, providing a limited investment method to participate in Bitcoin price fluctuations.

Morgan Stanley launched IBIT structured notes

According to a report by Bloomberg, Morgan Stanley sold $104 million worth of structured notes linked to the BlackRock iShares Bitcoin Spot ETF )IBIT( this month, which is five times the size of the second largest cryptocurrency-related notes currently in circulation in the United States. The features of the product are as follows:

The bill has a term of two years, and if IBIT's price is higher than the issuance price after one year.

Flat or rising → The note will be automatically redeemed, and investors will receive the principal plus approximately 28% return.

If the drop is less than 25% → Will continue to hold until maturity, with potential gains of up to 25%.

If the drop exceeds 25% → Investors must bear the entire loss of IBIT.

Are structured products of Bitcoin attracting investors who have a “love-hate” relationship with crypto assets?

Despite Bitcoin's recent drop of nearly 30% from its peak, financial institutions are gradually viewing it as a mature asset class and are providing it to private wealth clients through options hedging and structured design.

WSD data and supervisor Tiago Fernandes stated:

“Structured products are becoming the safest way for mainstream investors to access cryptocurrency-level fluctuations without taking on cryptocurrency-level risks. Issued in the form of U.S. securities with a certain level of protection, they are highly attractive to investors.”

Morgan Stanley's structured note is a “compromise between directly holding Bitcoin and complete hedging,” which can attract investors who are both “in love with and fearful of” crypto assets, and also reflects that Wall Street is incorporating Bitcoin into mainstream asset allocation.

BlackRock IBIT options surpass Deribit

Since the SEC approved the Bitcoin spot ETF in 2024, BlackRock's IBIT has become a market star product, with current assets of $72.2 billion, accounting for 3.94% of the total Bitcoin circulation, attracting a large inflow of funds.

Options based on IBIT will be launched in November 2024 and are also considered one of the hedging tools for Bitcoin. The open contract volume of IBIT has even surpassed that of Deribit, which was established in 2016 and dominates the Bitcoin options market.

This article discusses Morgan Stanley launching IBIT structured notes, allowing you to participate in Bitcoin fluctuations with limited exposure. It first appeared on Chain News ABMedia.