Morgan Stanley Plans to Open Crypto Investments to All Clients

Morgan Stanley, a leading global financial services bank, has planned to allow all its clients to invest in crypto investment funds. This all-round access is set to kick start from October 15. 

This move removes the high wealth barrier that once restricted crypto investing to only a small group of wealthy investors. It also reflects the banks’ broader plan to include digital assets across its platforms. 

Morgan Stanley Sets New Guardrails for Responsible Investing

Until now, Morgan Stanley’s crypto offerings were limited to clients holding at least $1.5 million in assets and an aggressive risk profile. Even then, clients could only invest in Bitcoin (BTC) or Ethereum-based tokens through taxable brokerage accounts. This leaves many clients without access to the growing digital asset market.

The upcoming policy change means that financial advisors will now be able to recommend crypto investment options, such as funds from BlackRock and Fidelity, to a much broader group of investors. This includes both individual investors and those saving for retirement.

In preparation for this wider access, Morgan Stanley, which manages $8.2 trillion in assets, has been creating new internal guidelines for crypto investing. In a note published on October 1, its Global Investment Committee suggested a maximum allocation of 4% in higher-risk portfolios. 

While more conservative investors should have little to no exposure. The bank also advised investors to rebalance regularly to avoid taking on too much risk.

Riding the Wave of Crypto ETF Success

Morgan Stanley’s decision follows the booming success of U.S.-regulated spot Bitcoin and Ethereum ETFs. In total, these investment funds have attracted over $77 billion in inflows since they were approved in the U.S. in 2024

For months, many of the bank’s clients were effectively locked out of this growing market. Now, with the new policy, Morgan Stanley’s $8.2 trillion wealth management arm is aligning itself with a wider shift in U.S. financial policy. This shift now sees crypto as a real investment option, not just a risky or side asset.

Washington’s Push for Broader Crypto Asset Access

This move also follows recent actions from Washington, D.C., aimed at expanding access to alternative assets in retirement plans. 

In August, President Donald Trump signed an order for the Department of Labor (DOL) and the Securities and Exchange Commission (SEC). The order directs them to make it easier for 401(k) plans to include crypto, gold, and private equity.

The order did not change existing laws but reversed earlier guidance that discouraged crypto in retirement accounts. It also gave agencies 180 days to propose new rules or protections for employers that add such options.

Since then, the Labor Department has released several advisory opinions. These opinions suggest it will lower legal risks for companies that add these assets to retirement plans.