Bitcoin News Today: Morgan Stanley Broadens Crypto Access Despite Advisor Skepticism

Morgan Stanley, the world's largest wealth management firm, has expanded access to cryptocurrency investments for all its wealth management clients, removing prior restrictions that limited such opportunities to high-net-worth individuals with aggressive risk profiles. Starting October 15, financial advisors will be able to recommend crypto funds and exchange-traded products (ETPs) to any client, including those with retirement accounts, according to multiple reports. The move reflects a broader shift in Wall Street's approach to digital assets, driven by regulatory changes under the Trump administration and growing institutional demand.

The firm previously required clients to have at least $1.5 million in assets and an aggressive risk tolerance to access crypto investments, which were confined to taxable brokerage accounts. Now, Morgan Stanley's Global Investment Committee (GIC) has issued a model recommending a maximum initial allocation of up to 4% of portfolios to cryptocurrencies, depending on individual goals such as "opportunistic growth" or "wealth conservation". Lisa Shalett, the firm's chief investment officer for wealth management, described crypto as a "speculative and increasingly popular asset class" that aligns with the "digital gold" narrative for Bitcoin.

The policy change is part of Morgan Stanley's broader strategy to remain competitive in a rapidly evolving market. With $8.2 trillion in client assets, the firm aims to counter platforms like Coinbase and Robinhood, which have attracted younger, crypto-native investors. The expansion also aligns with the U.S. government's more permissive stance on crypto, including President Trump's executive order in August 2025 that facilitated the inclusion of alternative assets in retirement plans.

To mitigate risks associated with crypto's volatility, Morgan Stanley will employ automated monitoring systems to ensure clients do not become overly concentrated in the asset class. The firm's GIC emphasized the importance of regular portfolio rebalancing-ideally quarterly or annually-to manage exposure. This approach mirrors recommendations from other major institutions, such as BlackRock and Fidelity, which suggest allocations of 1% to 5% for crypto in diversified portfolios.

The shift also underscores the growing legitimacy of crypto as an asset class. BlackRock's iShares Bitcoin Trust (IBIT), for instance, has amassed nearly $100 billion in assets under management within 18 months of its launch. Morgan Stanley's decision to allow crypto investments in retirement accounts further signals confidence in the sector's integration into mainstream finance. However, some advisors remain cautious. A CoinShares survey found that 62% of financial advisors believe recommending speculative assets like Bitcoin does not align with their legal obligation to act in clients' best interests.

Morgan Stanley's expansion comes as the firm prepares to enable direct trading of Bitcoin, ether, and solana on its E-Trade platform in early 2026. The bank has partnered with crypto infrastructure provider Zerohash to facilitate custody, liquidity, and settlement for these transactions. Meanwhile, clients currently have access only to Bitcoin funds from BlackRock and Fidelity, though Morgan Stanley is monitoring the market for additional offerings.

Source: [1] Morgan Stanley drops crypto fund restrictions for wealth clients (https://www.cnbc.com/2025/10/10/morgan-stanley-drops-crypto-fund-restrictions-for-wealth-clients.html?msockid=11a54a11265963f72a7e5c9327656221)

[2] Morgan Stanley Opens Crypto Access to All Clients Amid Wall Street Shift Toward Digital Assets (https://www.coindesk.com/markets/2025/10/10/morgan-stanley-opens-crypto-access-to-all-clients-amid-wall-street-shift-toward-digital-assets-cnbc)

[3] Morgan Stanley to Expand Client Access to Crypto (https://www.thinkadvisor.com/2025/10/10/morgan-stanley-to-expand-client-access-to-crypto/)

[4] Morgan Stanley Opens Bitcoin Access to All Wealth Clients (https://bitcoinmagazine.com/business/morgan-stanley-opens-bitcoin-access)

[5] Morgan Stanley broadens crypto fund access to wealth clients as... (https://www.investmentnews.com/alternatives/morgan-stanley-broadens-crypto-fund-access-to-wealth-clients-as-etf-landscape-shifts/262498)

[6] Morgan Stanley drops crypto fund restrictions for wealth clients (https://www.cnbc.com/2025/10/10/morgan-stanley-drops-crypto-fund-restrictions-for-wealth-clients.html?msockid=03fafdecd61b6b1c0fa4eb6ed7e86a49)

[7] $8T Morgan Stanley Opens Bitcoin Access to All Wealth Clients (https://thecryptobasic.com/2025/10/10/8t-morgan-stanley-opens-bitcoin-access-to-all-wealth-clients/)

[8] Morgan Stanley Crypto Funds Open to All Wealth Clients (https://cryptonews.com/news/morgan-stanley-unleashes-crypto-funds-for-all-wealth-clients-is-a-market-surge-imminent/)

[9] Coinbase at Morgan Stanley Conference: Strategic Moves in Crypto (https://www.investing.com/news/transcripts/coinbase-at-morgan-stanley-conference-strategic-moves-in-crypto-93CH-4089553)

[10] Morgan Stanley is opening cryptocurrency investments to all... (https://www.morningstar.com/news/marketwatch/20251010404/morgan-stanley-is-opening-cryptocurrency-investments-to-all-clients-heres-what-percentage-of-your-portfolio-should-be-in-crypto)

[11] Morgan Stanley Recommends a 4% 'Opportunistic' Crypto Portfolio Allocation (https://www.coindesk.com/markets/2025/10/07/morgan-stanley-recommends-a-4-opportunistic-crypto-portfolio-allocation)

[12] Morgan Stanley Wealth Unit Advises 2% to 4% Crypto... (https://cryptonews.com/news/morgan-stanley-unit-crypto-allocation-recommendation/)

[13] Wall Street Pivots: Morgan Stanley Officially Recommends... (https://finance.yahoo.com/news/wall-street-pivots-morgan-stanley-114628117.html)

[14] Morgan Stanley Recommends 2% to 4% Crypto Allocation in (https://www.btcc.com/en-US/square/QuantumNode99/1045206)