Big news in the world of finance: Morgan Stanley is opening cryptocurrency access to all clients starting October 15, breaking down barriers that previously limited crypto investments to only the wealthiest and most aggressive investors.
Previously, only clients with $1.5 million or more and a high-risk appetite could get into crypto funds. Now, advisers can pitch Bitcoin funds from BlackRock and Fidelity to anyone—even through retirement accounts like IRAs and 401(k)s.
Why This Matters
This move could unlock massive capital for crypto. Consider this: U.S. retirement accounts hold roughly $45.8 trillion, including $18 trillion in IRAs and $9.3 trillion in 401(k) plans. Morgan Stanley alone manages $6.2 trillion in assets for 19 million clients through 16,000 advisers. That’s a huge audience suddenly able to explore crypto.
How Advisors Are Guiding Clients
For now, advisers are limited to Bitcoin funds, and automated systems ensure clients don’t overexpose themselves to risky assets.
Financial planners suggest moderation:
- Clifford Cornell, Bone Fide Wealth: Advisers should help clients create “opportunity portfolios” for alternatives like crypto, separate from core investments.
- Edward Hadad, Financial Asset Management Corp.: Speculative assets such as crypto or gold should stay under 5% of total portfolios, keeping main financial goals achievable.
Morgan Stanley’s investment committee guidance:
- High-risk portfolios: up to 4% in crypto
- Balanced portfolios: up to 2%
- Conservative portfolios: avoid crypto entirely
They describe Bitcoin as “speculative but increasingly popular,” often calling it digital gold.
Industry Perspective
Other major players are also weighing in:
- BlackRock: recommends 1–2% Bitcoin allocation
- Fidelity: suggests 2–5% for most investors, up to 7.5% for younger clients
These endorsements signal that crypto is moving from niche to mainstream within traditional finance. With Morgan Stanley now enabling broader access, retirement accounts and everyday investors could become a significant new force in the crypto market.
