Morgan Stanley Drops Restrictions on Which Wealth Clients Can Own Crypto Funds
Morgan Stanley is expanding access to cryptocurrency investments across its vast wealth management network, removing long-standing restrictions on which clients can buy crypto funds and where they can hold them. Starting October 15, the bank’s financial advisors will be allowed to offer crypto-related products to all clients, including those with retirement accounts—marking a significant shift for the world’s largest wealth management firm.
Until now, only investors with at least $1.5 million in assets and an aggressive risk tolerance could gain exposure to crypto funds, and only through taxable brokerage accounts. The new policy, confirmed by sources familiar with the matter, opens the door for millions of additional Morgan Stanley clients to participate in the digital asset market.
The decision reflects a broader shift in sentiment since the election of President Donald Trump, whose administration has taken a friendlier stance toward cryptocurrencies. Just last month, Morgan Stanley announced that its E-Trade platform would begin supporting trading of bitcoin, ether, and solana, a major step in mainstreaming digital assets.
With more than $8.2 trillion in client assets, Morgan Stanley has cemented its status as an industry leader. But as platforms like Coinbase and Robinhood gain traction among younger investors, the firm has moved quickly to modernize its offerings. To manage potential risks, Morgan Stanley will use an automated monitoring system to ensure clients don’t become overexposed to the volatile crypto market.
According to an October 1 report from the bank’s Global Investment Committee, initial allocations to crypto will be capped at up to 4% of portfolios, depending on clients’ investment goals—from “wealth conservation” to “opportunistic growth.” “The committee considers cryptocurrency as a speculative and increasingly popular asset class that many investors, but not all, will seek to explore,” said Lisa Shalett, the firm’s chief investment officer for wealth management.
For now, advisors can only offer bitcoin funds from BlackRock and Fidelity, though the bank is considering expanding into other crypto-related products as the market evolves. Clients can also request to be placed into any listed crypto exchange-traded product (ETP).
The move signals how traditional Wall Street institutions are deepening their involvement in crypto, even as they maintain a cautious approach to risk. With Morgan Stanley now broadening access, other major banks may soon follow suit—further blurring the lines between mainstream finance and digital assets.
