Bitcoin News Today: Mainstream Finance Embraces Crypto as Morgan Stanley Expands Access

Morgan Stanley has significantly expanded access to cryptocurrency investments for its wealth management clients, removing previous restrictions that limited such opportunities to high-net-worth individuals. Effective October 15, 2025, the firm will permit all clients-including those with retirement accounts-to allocate funds to crypto assets, a shift from prior eligibility criteria that required at least $1.5 million in assets and an aggressive risk tolerance profile Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1]. This move aligns with the bank's broader strategy to adapt to evolving market dynamics and client demand, as highlighted in a report from Coindesk Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[2].

The firm's global investment committee has introduced a model recommending an initial crypto allocation of up to 4% for portfolios categorized as "opportunistic growth," while "balanced growth" portfolios are capped at 2% Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1]. Lisa Shalett, Morgan Stanley's chief investment officer for wealth management, noted that cryptocurrencies are increasingly viewed as a speculative yet relevant asset class for diversification Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1]. To mitigate risks associated with crypto's volatility, the bank will employ automated monitoring systems to ensure clients do not over-concentrate their holdings Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1].

Morgan Stanley's expansion includes enabling direct trading of Bitcoin, Ethereum, and Solana via its ETrade platform, facilitated by a partnership with crypto infrastructure firm Zerohash Morgan Stanley to Unlock Crypto Funds for All Wealth Clients^[4]. This development follows the approval of spot Bitcoin ETFs in 2024, which catalyzed broader institutional adoption of digital assets. Currently, advisors can recommend Bitcoin funds from BlackRock and Fidelity, though the firm is monitoring the market for potential additions to its offerings Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1].

The bank's $8.2 trillion wealth management business is positioning itself to compete with platforms like Coinbase and Robinhood, which have attracted retail crypto investors Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[2]. This shift reflects a broader trend in traditional finance, as institutions increasingly embrace crypto as a legitimate asset class. For instance, JPMorgan recently launched a deposit-token product, and Vanguard is reportedly reconsidering its stance on crypto ETFs Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[2].

Market reactions to Morgan Stanley's announcement have been mixed. Bitcoin's price surged past $125,000 in early October, partly driven by anticipation of institutional inflows, though analysts caution that volatility remains a concern . The firm's 4% allocation recommendation is expected to inject between $40 billion and $80 billion into crypto markets, with Bitcoin likely to benefit most . However, Morgan Stanley itself acknowledges the risks, emphasizing the need for careful risk management due to crypto's inherent price swings .

The decision underscores regulatory and macroeconomic tailwinds shaping the crypto landscape. The Trump administration's crypto-friendly policies, including the rescission of SAB 121 and the proposed Strategic Bitcoin Reserve, have reduced institutional hesitancy . Additionally, the Federal Reserve's anticipated rate cuts in late 2025 could further fuel risk-on sentiment, bolstering demand for alternative assets like Bitcoin .