Bitcoin News Today: Institutional Acceptance Drives Morgan Stanley's Crypto Expansion

Morgan Stanley has expanded access to cryptocurrency investments for all of its wealth management clients, removing prior restrictions that limited such exposure to high-net-worth individuals. Beginning October 15, the firm's financial advisors will be permitted to recommend crypto funds to any client, including those with retirement accounts or lower risk tolerances Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[1]. Previously, crypto investment options were restricted to clients with at least $1.5 million in assets and an aggressive risk profile Morgan Stanley Opens Crypto Investing to All of its Clients^[2]. The shift reflects growing institutional acceptance of crypto as an asset class and aligns with broader regulatory developments in the U.S., including the 2025 passage of the GENIUS Act, which established a federal framework for stablecoins Morgan Stanley Recommends a 4% 'Opportunistic' Crypto Portfolio Allocation^[5].

The firm's Global Investment Committee (GIC) has issued updated allocation guidance, recommending up to a 4% exposure to crypto for portfolios focused on "opportunistic growth" strategies, while advising 0% for income-focused or wealth conservation portfolios . Lisa Shalett, Morgan Stanley's Chief Investment Officer for wealth management, described crypto as a "speculative and increasingly popular asset class" in an internal note, emphasizing its potential as a hedge against long-term currency debasement Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[3]. The bank currently offers exposure through Bitcoin funds managed by BlackRock and Fidelity but may expand to other providers as the market matures Morgan Stanley Opens Crypto Investing to All of its Clients^[2].

The move positions Morgan Stanley as a leader in integrating crypto into traditional finance. The firm plans to extend its crypto access to its E-Trade retail platform by early 2026, enabling direct trading of Bitcoin, Ether, and Solana Morgan Stanley Opens Crypto Investing to All of its Clients^[2]. This dual approach-serving both institutional and retail clients-contrasts with competitors like Robinhood, which have focused on retail-first models Morgan Stanley Opens Crypto Investing to All of its Clients^[2]. The decision also follows BlackRock's iShares Bitcoin Trust (IBIT) surpassing $100 billion in assets under management, underscoring crypto's growing appeal among institutional investors Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[1].

Analysts note that Morgan Stanley's policy change mirrors a broader industry trend. Competitors such as JPMorgan Chase, Bank of America, and Citigroup are also exploring stablecoin initiatives and crypto-related products, driven by regulatory clarity and competitive pressures Morgan Stanley Recommends a 4% 'Opportunistic' Crypto Portfolio Allocation^[5]. Vanguard, historically skeptical of crypto, is reportedly reconsidering its stance on spot crypto ETFs Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[1]. The expansion of crypto access by legacy banks signals a shift from earlier caution, as digital assets increasingly gain traction as a component of diversified portfolios.

The firm's automated risk-monitoring framework aims to prevent overexposure to crypto's volatility, ensuring allocations align with client risk profiles Morgan Stanley Opens Crypto Investing to All of its Clients^[2]. While the 4% cap is modest compared to some industry benchmarks-Grayscale and VanEck recommend 5% and 6% allocations respectively-it marks a significant step for a traditionally conservative institution . Morgan Stanley's $8.2 trillion wealth management business now includes crypto as a strategic offering, reflecting the asset class's evolving role in modern portfolio theory Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[1].