Morgan Stanley is significantly widening its embrace of digital assets. The Wall Street giant told financial advisors on Friday that it will now allow all clients regardless of risk profile or asset level to invest in cryptocurrency funds, marking one of the most extensive moves by a traditional U.S. bank into the digital asset space, CNBC has learned.
Starting October 15, Morgan Stanley’s financial advisors will be able to offer crypto investment opportunities to any client, including those holding retirement accounts. Previously, such access was restricted to investors with an “aggressive” risk tolerance and at least $1.5 million in assets, and only within taxable brokerage accounts.
The decision reflects Morgan Stanley’s latest step toward normalizing crypto exposure within mainstream finance, following a sharp policy shift in Washington after the election of President Donald Trump, whose administration has been notably friendlier to the sector.
Last month, the firm announced that its E-Trade subsidiary would soon enable direct trading of bitcoin, ether, and solana, further positioning Morgan Stanley as a leader among traditional financial institutions integrating digital assets.
Over the past two decades, Morgan Stanley has evolved into a wealth management powerhouse, now overseeing $8.2 trillion in client assets across its wealth and investment divisions. As digital trading platforms like Coinbase and Robinhood attract younger and more crypto-savvy investors, the bank’s latest policy underscores its determination to maintain dominance in the evolving investment landscape.
“The move shows Morgan Stanley’s willingness to adapt to client demand and the changing regulatory climate,” said a person familiar with the firm’s plans. “They want to ensure clients don’t look elsewhere for crypto access.”
While the firm is opening its doors wider to crypto, Morgan Stanley is also taking steps to limit client overexposure to the notoriously volatile asset class. Sources familiar with the matter said the bank will employ an automated monitoring system designed to flag portfolios that become too heavily weighted toward cryptocurrencies.
In an October 1 report, the firm’s Global Investment Committee issued new allocation guidelines recommending a maximum initial exposure of up to 4% depending on investor goals ranging from “wealth conservation” to “opportunistic growth.”
“Cryptocurrency remains a speculative and increasingly popular asset class that many investors, but not all, will seek to explore,” said Lisa Shalett, Morgan Stanley’s Chief Investment Officer for Wealth Management, in the report.
For now, Morgan Stanley advisors will be limited to offering bitcoin funds managed by BlackRock and Fidelity, two of the most established players in the crypto fund space. However, people familiar with the firm’s strategy said Morgan Stanley is monitoring the industry for additional opportunities, potentially expanding into other digital assets and fund types as the market matures.
Clients will also be able to request access to any listed crypto exchange-traded product (ETP), further broadening the range of investment vehicles available through the bank.
Morgan Stanley expanded crypto policy marks a pivotal moment for the integration of digital assets into traditional financial systems. As regulatory clarity improves and institutional confidence grows, the firm’s move could prompt other major banks and wealth managers to follow suit.
“This is not just about opening crypto access,” said one industry analyst. “It’s about signaling that digital assets are becoming part of mainstream portfolio strategy and that Wall Street is officially on board.”
