by Coinstrooper Crypto Articles
Quick Take
  • The new policy removes those barriers, allowing any client to add crypto funds to their portfolio under adviser supervision.
  • financial regulation under the Trump administration, which has taken a more permissive stance toward digital assets.
  • It also comes as Morgan Stanley prepares to roll out direct trading of Bitcoin, Ether, and Solana through its E-Trade subsidiary.
  • With $8.2 trillion in client assets, Morgan Stanley is the largest wealth management firm globally.

What Happened

Morgan Stanley has opened the door for all its wealth management clients to invest in crypto, in what marks one of Wall Street’s broadest integrations of digital assets into traditional finance.

According to CNBC, the bank informed its financial advisers on Friday that starting October 15, crypto investments will be available to all clients, regardless of risk profile or account type, including retirement accounts.

Previously, access to crypto funds at Morgan Stanley was limited to clients with an “aggressive” risk tolerance and at least $1.5 million in investable assets who wanted exposure through a taxable brokerage account.

With $8.2 trillion in client assets, Morgan Stanley is the largest wealth management firm globally. The expansion of crypto access positions the firm to compete with platforms such as Coinbase and Robinhood, which have attracted younger, crypto-native investors in recent years.

The bank’s Global Investment Committee (GIC) recently issued guidance recommending that crypto exposure be capped at 4% of total assets, depending on each client’s investment strategy.

In a report dated October 1, Lisa Shalett, chief investment officer for Morgan Stanley Wealth Management, described cryptocurrency as “a speculative and increasingly popular asset class that many investors, but not all, will seek to explore.”

The committee categorized Bitcoin as a form of “digital gold,” placing it under the broader “real assets” umbrella within investment frameworks.

Hargreaves Lansdown Warns Retail Investors Against Crypto as Morgan Stanley Expands Digital Push

As Wall Street firms move deeper into digital assets, the U.K.’s largest retail investment platform, Hargreaves Lansdown, has urged caution.

The company warned investors against adding cryptocurrencies to their portfolios, calling Bitcoin “not an asset class” and lacking “intrinsic value.”

The statement comes shortly after the Financial Conduct Authority lifted its ban on crypto exchange-traded notes (ETNs) for retail investors.

While the move was seen as a major step toward cementing Britain’s position as a crypto hub, Hargreaves Lansdown said crypto’s extreme volatility makes it unsuitable for long-term investors.

Market Context

Morgan Stanley to Offer Bitcoin, Ether, and Solana Trading as Bitcoin Hits Record High

It also comes as Morgan Stanley prepares to roll out direct trading of Bitcoin, Ether, and Solana through its E-Trade subsidiary.

It recommends that clients rebalance quarterly to maintain stability and avoid excess risk from volatile price swings. As of now, Morgan Stanley advisors are permitted to pitch only Bitcoin funds managed by BlackRock and Fidelity.

However, sources familiar with the matter told CNBC that the bank is monitoring the market for potential additions, including funds covering other cryptocurrencies.

Clients can also request access to any listed crypto exchange-traded products available on U.S. markets.

Why It Matters

To manage risk, the bank said it will use automated monitoring systems to ensure clients’ portfolios remain diversified and not overly concentrated in digital assets.

The GIC’s allocation model suggests no mandatory exposure to crypto but allows advisers to include digital assets as part of a diversified portfolio.

Details

The new policy removes those barriers, allowing any client to add crypto funds to their portfolio under adviser supervision.

The move follows a broader shift in U.S. financial regulation under the Trump administration, which has taken a more permissive stance toward digital assets.

The development comes amid renewed momentum in the crypto sector. Bitcoin surged to a new all-time high of $125,000 over the weekend, with data showing centralized exchange reserves at their lowest levels in six years, a sign of tightening supply as institutional demand rises.

The October 8 decision allows the products, debt instruments linked to digital assets, to trade on regulated exchanges and even be included in tax-free stocks and shares ISA accounts.

Still, the firm acknowledged plans to permit “appropriate clients” to trade ETNs beginning in 2026, recognizing demand among speculative traders.