Morgan Stanley Crypto Funds Open to All Wealth Clients

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.

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 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.

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

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.

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.

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.

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.

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.

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