Bitcoin News Today: Morgan Stanley Unlocks "Digital Gold" for All Clients as Crypto Goes Mainstream

Morgan Stanley has expanded access to cryptocurrency investments for all clients, removing previous restrictions that limited such opportunities to high-net-worth individuals. Effective October 15, 2025, financial advisors will be permitted to recommend crypto funds to any client, including those with retirement accounts, a significant shift from prior criteria requiring a minimum $1.5 million in assets and aggressive risk tolerance Morgan Stanley drops crypto fund restrictions for wealth clients^[1]. This move aligns with the bank's broader strategy to integrate digital assets into mainstream wealth management, reflecting the evolving regulatory landscape under the Trump administration and the rising demand from clients Morgan Stanley drops crypto fund restrictions for wealth clients^[1].

The firm's Global Investment Committee (GIC) has issued a model recommending a maximum initial crypto allocation of up to 4% for portfolios targeting "opportunistic growth," while advising 0% exposure for "wealth conservation" or "income" strategies Morgan Stanley drops crypto fund restrictions for wealth clients^[1]. Lisa Shalett, the firm's chief investment officer for wealth management, described cryptocurrency as a "speculative and increasingly popular asset class," emphasizing that it is now a consideration for diversified portfolios Morgan Stanley drops crypto fund restrictions for wealth clients^[1]. For balanced or market growth-oriented portfolios, the GIC suggests allocations of 2% and 3%, respectively Morgan Stanley Recommends a 4% 'Opportunistic' Crypto^[3].

Morgan Stanley's advisors currently focus on BlackRock and Fidelity's Bitcoin ETFs but are monitoring the market for potential additions to their offerings Morgan Stanley drops crypto fund restrictions for wealth clients^[1]. The bank has also partnered with Zerohash to enable ETrade clients to trade Bitcoin, Ethereum, and Solana starting in early 2026 . This initiative, part of a broader digital asset strategy, includes plans to develop a full wallet solution for tokenized assets .

The firm's approach includes automated monitoring to prevent over-concentration in crypto, ensuring clients adhere to recommended allocation limits Morgan Stanley drops crypto fund restrictions for wealth clients^[1]. The move has been welcomed by industry figures, including Bitwise CEO Hunter Horsley, who noted that Morgan Stanley's guidance marks a milestone in crypto's mainstream adoption Morgan Stanley Global Investment Committee Endorses Modest …^[4]. Meanwhile, critics argue the 4% cap is "too little," given Bitcoin's recent rally to a record $125,700 and surging ETF inflows Wall Street Pivots: Morgan Stanley Officially Recommends …^[2].

Morgan Stanley's ETrade platform, which serves 5.2 million users, will offer direct crypto trading for the first time, leveraging Zerohash's infrastructure for custody and settlement . The partnership, which includes a $104 million investment in Zerohash led by Interactive Brokers, underscores the bank's commitment to scaling digital asset services . This expansion positions Morgan Stanley to compete with platforms like Robinhood, which has already established a strong retail crypto presence .

The firm's cautious yet strategic integration of crypto reflects the broader institutional trend of treating Bitcoin as "digital gold," a scarce asset with diversification benefits . While Morgan Stanley's allocation recommendations remain conservative compared to some peers, the firm's scale-managing $8.2 trillion in client assets-could amplify demand for crypto ETFs and drive further market adoption Morgan Stanley drops crypto fund restrictions for wealth clients^[1].