Morgan Stanley is set to make a major move into digital assets, opening access to crypto investment funds across all client accounts, including retirement portfolios, starting October 15, according to a report from CNBC.
The change marks a significant expansion for one of Wall Street’s largest wealth managers, removing the wealth and risk-profile barriers that previously limited who could invest in crypto through the firm. Until now, only clients with at least $1.5 million in assets and an “aggressive” risk rating could gain exposure to bitcoin or ether funds — and only within taxable brokerage accounts.
Under the new policy, financial advisors will be able to recommend crypto investment products from issuers such as BlackRock and Fidelity, giving a much broader range of clients access to digital assets.
Broadening Access to a Booming Market
Since the U.S. approval of spot Bitcoin and Ether ETFs in 2024, the market has seen a surge of investor interest. These exchange-traded funds have attracted more than $77 billion in inflows, according to data — a market that most Morgan Stanley clients have been unable to join until now.
The decision comes as the regulatory climate in Washington is becoming more accommodating toward alternative assets in retirement portfolios.
Policy Shifts in Washington
In August, President Donald Trump signed an executive order instructing the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to ease restrictions on including crypto, gold, and private equity in 401(k) plans. While the order doesn’t change existing law, it reverses prior guidance that discouraged crypto exposure in retirement accounts and gives regulators 180 days to propose new rules or safe harbor provisions.
The Labor Department has since released advisory opinions indicating it will reduce legal risks for retirement plan sponsors that choose to add these alternative assets.
Morgan Stanley’s New Guardrails for Crypto
As it expands access, Morgan Stanley has also outlined internal guidelines for digital-asset exposure. In an October 1 note, the firm’s Global Investment Committee recommended crypto allocations of up to 4% in model portfolios, depending on investor risk tolerance — from 0% for conservative investors to 4% in “opportunistic growth” accounts.
The committee described cryptocurrencies as “speculative but increasingly popular,” emphasizing the importance of regular rebalancing to manage concentration risk and maintain portfolio stability.
A Turning Point for Institutional Crypto Access
With $8.2 trillion in client assets, Morgan Stanley’s decision represents one of the most significant endorsements yet of crypto’s role in mainstream investment portfolios. The move could reshape how both individual investors and institutions view digital assets — not just as speculative plays, but as legitimate components of diversified wealth strategies.
