Bitcoin News Today: Morgan Stanley Frames Bitcoin as 'Digital Gold' in Mainstream Portfolios

Morgan Stanley, the Wall Street giant managing $8.2 trillion in assets, is set to democratize access to Bitcoin for all its wealth management clients starting October 15, 2025. The move removes prior restrictions that limited crypto investments to high-net-worth individuals with at least $1.5 million in assets and an aggressive risk tolerance. Now, even retirement accounts-including IRAs and 401(k)s-will be able to allocate up to 4% of portfolios to crypto, with lower-risk profiles advised to avoid the asset class entirely.

The policy shift aligns with a broader regulatory thaw under President Donald Trump, who has actively dismantled barriers for banks engaging in crypto. Trump's administration rescinded Biden-era restrictions, enabling institutions to explore digital assets as a legitimate investment vehicle. Morgan Stanley's Global Investment Committee (GIC) now frames Bitcoin as "digital gold," advocating for its inclusion in multi-asset portfolios as a scarce, low-correlation asset. The firm's 16,000 financial advisors will use automated systems to monitor client exposure, ensuring allocations remain within recommended thresholds.

Initial offerings will focus on BlackRock and Fidelity Bitcoin ETFs, with plans to expand to direct crypto trading on its ETrade platform by mid-2026. ETrade, which serves 5 million clients and manages $360 billion in assets, will initially support spot trading of Bitcoin, Ethereum, and Solana. The move positions Morgan Stanley as a direct competitor to Robinhood and Coinbase, as it aims to capture a share of the $1.3 trillion crypto trading market.

The timing reflects a seismic shift in institutional attitudes toward crypto. Just months ago, JPMorgan CEO Jamie Dimon dismissed Bitcoin as a "fraud," yet the bank now accepts crypto ETFs as loan collateral. BlackRock's Bitcoin ETF, which earned $245 million in fees last year, underscores the growing appeal of regulated crypto products. Meanwhile, Fidelity has launched no-fee retirement accounts for crypto investments, and VanEck and Grayscale are pushing higher allocation benchmarks, ranging from 5–6%.

Morgan Stanley's 2–4% guidance contrasts sharply with Europe's fragmented regulatory landscape, where adoption remains sluggish. Analysts attribute this to unclear guidelines and conservative investment mandates in the EU. In contrast, the U.S. market's unified regulatory approach and strong retail demand have accelerated mainstream acceptance. BlackRock's recent launch of a Bitcoin ETP in Europe could signal a turning point, though widespread institutional adoption remains uncertain without clearer rules.

The bank's pivot has already triggered market reactions. Bitcoin surged to a record $125,700 in early October, fueled by inflows into ETFs and a weaker U.S. dollar. Morgan Stanley's endorsement is seen as a catalyst for further institutional participation, with some analysts predicting trillions in capital could shift into crypto if global asset allocators follow suit.

As the firm prepares to roll out ETrade crypto trading, the financial sector is watching closely. Competitors like Charles Schwab and Robinhood face intensified pressure to expand their offerings, while the broader market braces for a new era of institutional-grade crypto infrastructure. For now, Morgan Stanley's 4% ceiling reflects a cautious embrace of an asset class that, despite its volatility, is increasingly viewed as a cornerstone of diversified portfolios in the digital age.

Source: [1] Durchbruch: Megabank Morgan Stanley möchte Bitcoin- und Kryptohandel anbieten (https://newsbit.de/durchbruch-megabank-morgan-stanley-moechte-bitcoin-und-kryptohandel-anbieten/)

[2] Morgan Stanley Lets All Clients Invest in Bitcoin - coinnews.com (https://coinnews.com/news/morgan-stanley-opens-bitcoin-and-crypto-investments-to-all-wealth-clients-starting-october-15/)

[4] Morgan Stanley Opens Bitcoin Funds to All Clients ... (https://coincentral.com/morgan-stanley-opens-bitcoin-funds-to-all-clients-starting-october-15/)

[6] Bitcoin adoption in EU limited by 'fragmented' regulations - Analysts (https://cointelegraph.com/news/bitcoin-adoption-eu-fragmented-regulations-analysts)

[8] Bitcoin Adoption in Europe Hampered by Fragmented ... (https://finance.yahoo.com/news/bitcoin-adoption-europe-hampered-fragmented-010059010.html)

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

[11] Morgan Stanley's Crypto Leap: A New Era for Digital Assets and ... (https://markets.financialcontent.com/wral/article/marketminute-2025-9-28-morgan-stanleys-crypto-leap-a-new-era-for-digital-assets-and-indirect-boost-for-xrp)

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

[13] Morgan Stanley: Crypto Allocation of up to 4% Ok in Higher Risk ... (https://cointelegraph.com/news/morgan-stanley-recommends-conservative-crypto-allocation)