Bitcoin News Today: As Crypto Matures, Morgan Stanley Opens Portfolios to All Clients

Morgan Stanley has expanded access to cryptocurrency investments for all of its wealth management clients, including those with retirement accounts, marking a significant shift in the bank's approach to digital assets. The move, effective October 15, removes previous restrictions that limited crypto exposure to high-net-worth individuals with at least $1.5 million in assets and an aggressive risk tolerance. This decision reflects growing institutional acceptance of crypto as a mainstream asset class and intensifies competition among traditional financial firms to meet evolving client demands Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets^[1].

The bank's global investment committee has established a framework allowing advisors to recommend crypto funds, with automated monitoring systems to prevent overexposure. Initial allocations are capped at 4% of a client's portfolio, depending on their risk profile and investment goals. Lisa Shalett, Morgan Stanley's Chief Investment Officer for wealth management, described crypto as "a speculative but increasingly popular asset class" in an internal memo, underscoring the firm's cautious yet proactive stance Morgan Stanley Opens Crypto Investing to All of its Clients^[2].

Currently, Morgan Stanley offers exposure through BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's crypto funds. However, the bank plans to diversify its offerings as the market matures. This expansion aligns with broader industry trends, including the success of spot Bitcoin ETFs. BlackRock's IBIT, for instance, has amassed nearly $100 billion in assets under management, making it the firm's most profitable ETF U.S. Bitcoin ETFs See $1B Inflows, Seen 6 Times Before^[3].

The decision also ties into Morgan Stanley's broader strategy to integrate crypto across its wealth and retail divisions. The bank announced plans to enable direct crypto trading on its ETrade platform by early 2026, allowing clients to buy and sell Bitcoin, Ethereum, and Solana. This initiative, supported by partnerships with custody provider ZeroHash, positions Morgan Stanley as one of the first U.S. banks to unify crypto access across institutional and retail channels Morgan Stanley Expanding Access to Crypto Fund Investments^[4].

The shift highlights intensifying competition in the brokerage space. While rivals like Robinhood and Fidelity have focused on retail-first models, traditional banks have historically restricted crypto to elite investors. Morgan Stanley's move signals that digital assets are no longer viewed as speculative outliers but as integral components of diversified portfolios. Analysts note that the firm's expansion follows regulatory clarity and the growing institutional adoption of crypto, exemplified by the $60 billion in net inflows into U.S. crypto ETFs since January 2024 U.S. Bitcoin ETFs Lead $5.95B Crypto Inflows as Q4 Heats Up^[5].

The bank's strategy also aligns with broader market dynamics. Combined spot and derivatives trading on centralized exchanges reached a record $9.72 trillion in August 2025, with Ethereum ETFs attracting $1.48 billion in inflows last week alone. Despite recent volatility, including a $600 million liquidation event linked to Trump's tariff threats, institutional demand for crypto remains robust Bitcoin and Ethereum's Rise Also Reflected in ETFs! Record Inflows to ETFs^[6].