Morgan Stanley has taken a decisive step toward Bitcoin adoption, with its Global Investment Committee recommending that clients include the cryptocurrency in diversified portfolios.
The bank now classifies Bitcoin as “digital gold,” suggesting an allocation of 2% to 4% depending on risk tolerance.
Given the firm’s $2 trillion in managed assets, even modest exposure could bring tens of billions in new inflows to Bitcoin. The shift marks a sharp change from Morgan Stanley’s earlier caution, when crypto access was limited to ultra-wealthy clients.
Analysts at the bank emphasized that while volatility remains a factor, Bitcoin has evolved into a credible hedge and portfolio diversifier, especially as institutional infrastructure strengthens and correlation with traditional markets weakens.
The new stance mirrors similar guidance from BlackRock, which endorsed a 2% Bitcoin allocation for long-term investors, and aligns with views from Ray Dalio, who describes Bitcoin as an inflation hedge akin to gold.
According to market observers, this language change – from “avoid” to “allocate strategically” – signals a turning point for institutional adoption. The rise of spot Bitcoin ETFs since 2024 has already made the asset more accessible, pushing its price above $125,000 and solidifying its role within mainstream wealth strategies.
With Morgan Stanley’s endorsement, Bitcoin is no longer being treated as a speculative outlier. Instead, it’s becoming a permanent fixture in the global investment conversation.
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