Bitcoin News Today: Morgan Stanley's Crypto Shift Signals Mainstream Financial Acceptance

Morgan Stanley, the world's largest wealth management firm with $8.2 trillion in client assets, is broadening access to cryptocurrency investments for all its clients, including those with retirement accounts, effective October 15, 2025. The firm will no longer restrict crypto fund access to high-net-worth individuals with $1.5 million in assets and an aggressive risk tolerance, marking a significant shift in its approach to digital assets. This expansion follows regulatory changes under the Trump administration, which encouraged broader inclusion of cryptocurrencies in retirement portfolios and other investment vehicles. Previously, only taxable brokerage accounts could include crypto, but the new policy aligns with growing institutional acceptance of the asset class Morgan Stanley Drops Crypto Fund Restrictions for Wealth Clients^[1].

The firm's Global Investment Committee (GIC) has issued guidance recommending a maximum initial crypto allocation of 2-4% in client portfolios, depending on investment goals ranging from "wealth conservation" to "opportunistic growth." For conservative portfolios, the GIC advises zero crypto exposure, while growth-oriented accounts may allocate up to 4%. Lisa Shalett, Morgan Stanley's chief investment officer for wealth management, emphasized that crypto is "speculative and increasingly popular" but should be approached with caution due to its volatility. The GIC also stresses the importance of regular portfolio rebalancing to manage concentration risks and align with evolving market conditions Morgan Stanley Global Investment Committee Endorses Modest Crypto Allocation for Clients^[2].

To implement the new policy, Morgan Stanley will use an automated monitoring system to ensure clients are not overexposed to crypto. Advisors are currently limited to recommending Bitcoin funds from BlackRock and Fidelity but may expand to include other cryptocurrencies like Ethereum and Solana as the market matures. Clients can also request exposure to listed crypto exchange-traded products (ETPs). The firm's decision reflects a strategic response to rising client demand and competition from platforms like Coinbase and Robinhood, which have accelerated the adoption of digital assets Morgan Stanley Opens Crypto Investing to All of Its Clients^[3].

Morgan Stanley's ETrade subsidiary is set to launch direct crypto trading for its retail clients by mid-2026, facilitated by a partnership with Zerohash, a digital asset infrastructure provider. This will allow ETrade users to trade Bitcoin, Ethereum, and Solana directly, marking a further integration of crypto into traditional brokerage services. The move aligns with broader regulatory trends, including a Trump-era executive order that streamlined rules for including crypto in 401(k) plans and other retirement accounts. The Labor Department has since issued advisory opinions to reduce legal risks for plan sponsors adding alternative assets Morgan Stanley's Crypto Leap: A New Era for Digital Assets^[4].

Market reactions to the firm's pivot have been mixed. While some analysts view the 4% allocation cap as a measured endorsement of crypto's legitimacy, critics argue it is "too late" and "too little" given Bitcoin's recent rally to $125,700. Bitwise CEO Hunter Horsley called the GIC's guidance a "milestone," signaling crypto's entry into the mainstream financial era. However, the firm's cautious approach-excluding crypto from conservative portfolios-highlights lingering institutional skepticism about the asset's long-term stability Morgan Stanley Crypto Guidance: 2–4% Allocations by Risk^[5].