Morgan Stanley will lift all restrictions on which of its wealth management clients can invest in cryptocurrency funds, the firm told financial advisors on Friday, according to a CNBC report.
Beginning October 15, financial advisors will be able to recommend bitcoin and ether investment products to any client, including those using retirement or trust accounts. Previously, such access was reserved for investors with over $1.5 million in assets and an “aggressive” risk profile.
The policy change comes amid a broader recalibration in US financial regulation toward digital assets following the 2024 election of President Donald Trump. Morgan Stanley, which oversees about $8.2 trillion in client assets, is positioning itself to compete with digital-native brokerages such as Coinbase and Robinhood, which have grown their crypto offerings in recent years.
The firm also plans to enable direct trading of bitcoin, ether and solana through its E-Trade platform later this year.
Morgan Stanley’s global investment committee recently advised clients to limit initial allocations to crypto at roughly 4%, depending on portfolio objectives. Chief investment officer Lisa Shalett described crypto as a “speculative and increasingly popular asset class” that many—but not all—investors will want exposure to.
The bank will rely on automated monitoring tools to prevent excessive concentration in digital assets. At launch, advisors will be restricted to offering funds managed by BlackRock and Fidelity, but Morgan Stanley is evaluating other crypto fund providers as the sector matures.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/morgan-stanley-crypto-access