Ethereum News Today: Morgan Stanley Opens Crypto Access to All Clients, Marking Mainstream Finance Shift

Morgan Stanley, the world's largest wealth management firm, has removed long-standing restrictions on cryptocurrency investments for its clients, marking a pivotal shift in institutional finance. Effective October 15, 2025, financial advisors will be able to recommend crypto funds to all clients-including those with retirement accounts-ending prior limitations that restricted access to high-net-worth individuals with aggressive risk profiles and at least $1.5 million in assets . The move follows a broader regulatory shift under President Donald Trump's administration, which has signaled greater openness to digital assets in traditional finance .

The firm's global investment committee has outlined a cautious approach to crypto allocations, recommending a maximum initial exposure of 4% for growth-oriented portfolios and lower allocations for more conservative strategies . Lisa Shalett, Morgan Stanley's chief investment officer for wealth management, described cryptocurrency as a "speculative and increasingly popular asset class" that "many investors, but not all, will seek to explore" . To mitigate risks, the bank will use automated monitoring to prevent overconcentration in crypto, a volatile asset class. Advisors are currently limited to promoting Bitcoin funds from BlackRock and Fidelity, though Morgan Stanley is evaluating potential additions, including other cryptocurrencies .

The decision aligns with a surge in institutional interest in crypto, driven by technological upgrades to Ethereum and regulatory clarity. Ethereum's market share in tokenized real-world assets (RWAs) now exceeds 50%, and its role in stablecoin infrastructure has solidified its position as a backbone for blockchain-based finance . Meanwhile, U.S. spot Ethereum ETFs have attracted record inflows, with BlackRock's iShares Ethereum Trust alone drawing $499 million in a single day in July 2025 . These trends have pushed Ethereum's price above $3,700, as institutions increasingly view it as a strategic asset .

Morgan Stanley's $8.2 trillion wealth management division is also responding to client demand, with many investors seeking exposure to crypto after years of cautious institutional skepticism. The firm's E-Trade subsidiary plans to enable trading of Bitcoin, Ethereum, and Solana by next year, further integrating digital assets into its offerings . Analysts note that Morgan Stanley's move could prompt competitors like Goldman Sachs and JPMorgan to accelerate their crypto strategies to avoid falling behind . "Institutions are beginning to see digital assets not just as speculative investments, but as an investable asset class that needs structured access points," said Jeff Feng, co-founder of Sei Labs .

While the expansion of crypto access signals growing acceptance, risks remain. Short-term volatility could intensify as institutional inflows swell, and regulatory uncertainties persist. Morgan Stanley's internal guidance emphasizes rebalancing portfolios to avoid overexposure, a reflection of crypto's inherent price swings . Additionally, a CoinShares survey found that 62% of advisors remain wary of recommending speculative assets like Bitcoin, citing legal and reputational concerns . However, 88% of advisors reported increased optimism after the SEC's approval of Bitcoin and Ethereum ETFs, suggesting a gradual normalization of crypto in traditional finance .

The ripple effects of Morgan Stanley's decision are already evident. Trading volumes on platforms like Coinbase and Binance spiked following the announcement, and Ethereum's market share hit a two-month high . The firm's embrace of crypto also underscores a broader trend: as of June 2025, U.S. retirement assets totaled $45.8 trillion, with Morgan Stanley's policy change potentially unlocking billions in new capital for crypto . "This is a milestone in crypto's journey toward mainstream acceptance," said one analyst, noting that October 11, 2025, may be remembered as a turning point for institutional adoption .

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=2491be47f83c6e572c4ca8c4f9856fbb)

[2] Morgan Stanley Eases Barriers To Bitcoin And Ether Funds For All ... (https://www.benzinga.com/crypto/cryptocurrency/25/10/48153165/morgan-stanley-eases-barriers-to-bitcoin-and-ether-funds-for-all-clients)

[3] Morgan Stanley Lifts Restrictions on Crypto Investments: What It ... (https://www.btcc.com/en-US/square/B1tK1ng/1056945)

[4] Morgan Stanley drops crypto fund restrictions for wealth clients (https://bitcoinethereumnews.com/crypto/morgan-stanley-drops-crypto-fund-restrictions-for-wealth-clients/)

[5] Morgan Stanley Removes Restrictions on Crypto Investments for ... (https://www.mexc.com/en-GB/news/morgan-stanley-removes-restrictions-on-crypto-investments-for-all-clients/125707)

[7] Morgan Stanley opens crypto funds to all clients (https://cointelegraph.com/news/morgan-stanley-crypto-fund-access-all-investors)

[8] Breaking News: Morgan Stanley Removes Limits on Bitcoin and ... (https://themarketperiodical.com/2025/10/11/breaking-news-morgan-stanley-removes-limits-on-bitcoin-and-crypto-investments/)

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

[11] Institutional Adoption of Ethereum – The Next Big Trade for TradFi (https://crypto.com/en/research/institutional-adoption-of-ethereum-aug-2025)

[12] Ethereum Soars: Institutional Floodgates Open for ETH (https://www.chainup.com/blog/ethereum-institutional-adoption-july-2025/)