Morgan Stanley Opens Bitcoin and Crypto Fund Access to All Wealth Clients

Morgan Stanley has expanded access to Bitcoin and cryptocurrency investments across its wealth management division, allowing all clients to invest in digital asset funds, including through retirement accounts. 

The update, communicated to financial advisors on Friday, takes effect October 15th, according to information obtained by CNBC.

Previously, Bitcoin and crypto investments were restricted to clients with at least $1.5 million in assets and an “aggressive” risk tolerance, and could only be held in taxable brokerage accounts. 

Under the new guidelines, financial advisors will be permitted to offer Bitcoin and crypto funds to any client, regardless of account type.

The policy change follows a broader shift in the firm’s approach to digital assets.

The firm, which manages $8.2 trillion in client assets, has been expanding its range of investment products amid growing competition from platforms such as Coinbase and Robinhood.

According to people familiar with the matter, Morgan Stanley will implement automated systems to monitor clients’ portfolios and ensure that exposure to Bitcoin and crypto remains within recommended limits. 

The firm’s global investment committee has suggested that initial allocations to digital assets should not exceed 4%, depending on individual investment goals.

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, chief investment officer for wealth management, in an October 1st report.

At present, advisors may offer only Bitcoin-related funds managed by BlackRock and Fidelity. 

Morgan Stanley’s decision represents one of the more extensive moves by a major U.S. wealth manager to integrate digital assets into client portfolios, while maintaining risk oversight through internal monitoring and allocation guidelines.

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