Étienne Girard
Morgan Stanley is set to give all of its clients access to cryptocurrency investment funds starting October 15, according to a report by CNBC. The move marks a major step toward mainstream crypto adoption, removing the wealth and risk barriers that previously restricted access to digital assets.
Until now, only investors holding at least $1.5 million in assets and maintaining an “aggressive” risk profile could gain exposure to Bitcoin (BTC) or Ethereum (ETH) through taxable brokerage accounts.
Beginning this month, financial advisors at the $8.2 trillion wealth management firm will be able to recommend crypto investment vehicles from major issuers like BlackRock and Fidelity — expanding availability to a broader range of clients, including those with retirement plans and 401(k) accounts.
Since the U.S. approval of spot Bitcoin and Ethereum ETFs in 2024, the two asset classes have collectively attracted over $77 billion in inflows, based on data from PRIME. However, most Morgan Stanley clients were previously excluded from this rapidly growing market.
Regulatory Winds Shift in Washington
This policy shift aligns with the broader softening of regulatory attitudes in Washington D.C. toward alternative assets in retirement portfolios.
In August, President Donald Trump signed an executive order instructing the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to facilitate the inclusion of crypto, gold, and private equity in retirement plans.
Although the order itself did not directly amend existing laws, it overturned previous DOL guidance discouraging crypto exposure in 401(k) accounts and set a 180-day deadline for agencies to introduce new rules or safe-harbor frameworks.
Following the announcement, the Labor Department issued several advisory opinions indicating it would reduce legal liabilities for plan sponsors offering such investment options.
Morgan Stanley Introduces Clear Crypto Allocation Guidelines
Morgan Stanley’s Global Investment Committee recently published internal guidance outlining recommended crypto allocations across different investor profiles.
In a research note dated October 1, the firm suggested crypto exposure ranging from 0% to 4%, depending on risk tolerance. Conservative portfolios would maintain no allocation, while “opportunistic growth” accounts could dedicate up to 4% toward digital assets.
The committee characterized cryptocurrencies as “speculative yet increasingly mainstream,” emphasizing the importance of periodic portfolio rebalancing to mitigate potential concentration risks.
A Turning Point for Institutional Crypto Adoption
With this decision, Morgan Stanley becomes one of the first major Wall Street institutions to fully integrate crypto products into both standard and retirement portfolios.
The firm’s move could signal a broader industry shift, especially as more U.S. regulatory frameworks evolve to support the inclusion of digital assets in traditional finance.
