Morgan Stanley told financial advisors on Friday that the firm will allow all clients to invest in cryptocurrency funds starting October 15. According to Cointelegraph, advisors can now offer crypto investments to any client, including those with retirement accounts. The bank previously limited crypto access to clients with at least $1.5 million in assets and an aggressive risk profile.
The firm will use automated monitoring systems to prevent excessive crypto exposure among clients. Morgan Stanley's global investment committee recommends a maximum initial allocation of up to 4 % for crypto investments. Advisors can currently offer only Bitcoin funds from BlackRock and Fidelity, though the bank is evaluating additional crypto products for future inclusion.
Impact on Retirement Account Holders
The policy change opens crypto investment opportunities to Morgan Stanley's 16,000 financial advisors who serve more than 19 million client relationships. The firm oversees approximately $6.2 trillion in client assets through its Wealth Management division. Retirement accounts represent a massive potential market for crypto allocation, with US retirement assets totaling about $45.8 trillion as of June 30.
Individual retirement accounts hold approximately $18 trillion while 401(k) plans contain about $9.3 trillion, according to the Investment Company Institute. We reported that institutional adoption has accelerated in 2025, with major financial players including BlackRock and Fidelity expanding cryptocurrency product offerings. The removal of asset minimums means millions of Americans can now access Bitcoin through existing brokerage relationships rather than opening separate crypto exchange accounts.
Wall Street's Crypto Adoption Accelerates
Morgan Stanley's decision reflects a broader transformation across traditional finance institutions. Fortune reported that BlackRock's iShares Bitcoin Trust ETF now generates more annual revenue than its signature S&P 500 fund. The Bitcoin ETF has attracted $52 billion in net inflows since launching in January 2024 and holds over 55 % of all Bitcoin ETF assets.
JPMorgan announced in June that clients can use crypto exchange‑traded funds as loan collateral. The bank also factors crypto holdings into overall net worth assessments for wealth management clients. This competitive pressure from digital‑native brokerages like Coinbase and Robinhood has pushed traditional financial institutions to expand crypto services. Even Vanguard, known for crypto skepticism, is reportedly considering spot crypto ETF access for clients.
President Trump's administration has created a friendlier regulatory environment for digital assets. Trump signed an executive order in August to expand investment options in retirement plans under ERISA. The order instructs federal agencies to make it easier for 401(k) and 403(b) plans to include alternative assets like crypto when deemed suitable by fiduciaries.