Morgan Stanley, a major American investment firm, has announced that starting October 15, all of its customer accounts will gain access to cryptocurrency funds. Previously, such investments were only available to investors with over 1.5 million dollars and an “aggressive” risk profile. Now, the company’s advisors will be able to recommend Bitcoin and Ethereum funds managed by giants like BlackRock and Fidelity to a much broader group of investors.
Regulatory Support from Washington
In 2024, spot Bitcoin and Ethereum ETFs approved in the United States attracted a total of 77 billion dollars in inflows, according to The Block. Up until now, Morgan Stanley’s clients were largely excluded from this market. This new decision aims to integrate digital assets into mainstream investment tools by opening the doors to crypto within the bank’s 8.2 trillion‑dollar asset portfolio under management.
This strategic move coincides with the U.S. administration’s easing of restrictions on alternative assets in retirement plans. In August, President Donald Trump issued an executive order directing the Department of Labor and the Securities and Exchange Commission (SEC) to facilitate the inclusion of crypto, gold, and private equity funds in 401(k) plans.
While the executive order does not change the current laws, it rescinded guidelines that previously discouraged cryptocurrency assets and called for new regulatory proposals to be formulated within 180 days. Since that time, the Department of Labor has indicated it will lessen the legal risks for institutions incorporating crypto assets into retirement funds.
Morgan Stanley’s Cryptocurrency Guide
Morgan Stanley’s global investment committee suggested in an October 1 note that up to 4 % of model portfolios could be allocated to crypto, depending on risk tolerance. Cryptocurrencies were labeled “speculative but increasingly popular,” and the report emphasized the need for regular rebalancing to counteract portfolio overconcentration risks.
Similarly, JPMorgan recently announced plans to expand its blockchain‑based payment infrastructure for institutional clients. These developments indicate that major financial institutions are beginning to consider cryptocurrency assets as a permanent asset class.
Morgan Stanley’s move further blurs the lines between traditional finance and the crypto world. This step not only diversifies the bank’s client portfolio but also accelerates institutional confidence in digital assets. However, experts warn that investors should remain cautious due to volatility and regulatory uncertainties.