Morgan Stanley is now allowing all of its wealth management clients to invest in cryptocurrency. This is one of the biggest moves on Wall Street to include digital assets in traditional finance.
As per CNBC, the bank told its financial advisers on Friday that from October 15, all clients can invest in cryptocurrency, no matter their risk level or account type, including retirement accounts.
Before, only clients at Morgan Stanley who were willing to take big risks and had at least $1. 5 million to invest could access crypto funds through a taxable brokerage account.
The new policy makes it easier for any client to add cryptocurrency to their investment portfolio with help from their adviser.
Morgan Stanley will start allowing trading of Bitcoin, Ether, and Solana as Bitcoin reaches a new high price
This change is part of a larger trend in the U. S financial rules during the Trump administration have become more relaxed about digital money.
Morgan Stanley is getting ready to let people buy and sell Bitcoin, Ether, and Solana directly using its E-Trade service.
Morgan Stanley is the biggest wealth management company in the world, with $8. 2 trillion in assets from clients. The company is working to make it easier for people to use crypto, allowing it to compete with platforms like Coinbase and Robinhood, which have gained popularity among younger people interested in crypto lately.
To handle risk, the bank said it will use automatic checks to make sure clients’ investments are spread out and not too focused on digital assets.
The bank’s Global Investment Committee (GIC) recently suggested that clients limit their investment in cryptocurrency to no more than 4% of their total assets, based on their individual investment plans.
On October 1, Lisa Shalett, the chief investment officer at Morgan Stanley Wealth Management, said that cryptocurrency is a trendy and risky type of investment that many investors are interested in, but not everyone is.
The committee labeled Bitcoin as a type of “digital gold,” putting it into the larger group of “real assets” in investment categories.
The GIC’s allocation plan does not require you to invest in crypto, but it lets advisers add digital assets to a diversified investment portfolio.
It suggests that clients should adjust their investments every three months to keep things steady and reduce extra risk from price changes. Right now, Morgan Stanley advisors can only offer Bitcoin funds that are managed by BlackRock and Fidelity.
But, people who know about it told CNBC that the bank is keeping an eye on the market to possibly add other types of cryptocurrencies.
Clients can ask to access any crypto exchange-traded products listed in the U. S markets
This news comes as interest in the cryptocurrency market is growing again. Bitcoin hit a record high of $125,000 over the weekend. Reports show that the amount of Bitcoin held in major exchanges is at its lowest in six years. This indicates that the supply is getting tighter as more big investors are looking to buy.
Hargreaves Lansdown advises regular investors to be careful with cryptocurrency, while Morgan Stanley is increasing its efforts in the digital market
As Wall Street companies get more involved in digital assets, Hargreaves Lansdown, the biggest investment platform in the U. K, has advised people to be careful.
The company advised investors not to include cryptocurrencies in their investments. They described Bitcoin as “not a real asset” and said it doesn’t have any “true value. ”
The statement was made right after the Financial Conduct Authority removed its ban on crypto exchange-traded notes (ETNs) for everyday investors.
The decision made on October 8 lets products connected to digital assets trade on regulated exchanges. These products can also be included in tax-free ISA accounts for stocks and shares.
The decision was considered an important step in making Britain a center for cryptocurrency, but Hargreaves Lansdown warned that the extreme ups and downs of crypto make it not a good choice for people looking to invest for a long time.
The company said they will allow certain clients to trade ETNs starting in 2026, as they see interest from traders who like to take risks.
Across the ocean, Morgan Stanley is growing its presence in the crypto industry. The bank started providing spot Bitcoin ETFs to rich clients in August 2024 and aims to start crypto trading for E-Trade users by early 2026.
Bloomberg says that the new platform will first work with Bitcoin, Ether, and Solana, and Zerohash will provide the necessary technology.
Morgan Stanley leaders called the launch “phase one,” which aims to add digital assets to regular investment portfolios.
“The technology has been shown to work well,” said Jed Finn, who leads wealth management. “Blockchain technology is not going away. ”
