Morgan Stanley Opens Bitcoin Access to All Clients
Morgan Stanley, one of the world’s biggest wealth management firms, is making a big change. Starting October 15, the bank will let all its clients invest in bitcoin. This is a historic move for a major U.S. bank and shows growing trust in digital assets.
New Rules for Bitcoin Investment
Before this change, only clients with at least $1.5 million and a high risk tolerance could buy bitcoin through Morgan Stanley. Now, these limits are gone. Any client, no matter their net worth or risk level, can invest in bitcoin funds. This includes retirement accounts like IRAs and 401(k)s, which were not allowed before.
This change affects millions of Morgan Stanley clients. It means retirees, new investors, and others can add bitcoin to their portfolios. Morgan Stanley’s wealth management business manages $8.2 trillion, so this is a major shift.
How Morgan Stanley Will Manage Risk
The bank will use automated systems to watch clients’ bitcoin investments. These systems will help keep risk low by stopping clients from putting too much money into bitcoin. This way, more people can invest safely.
More Digital Asset Options Coming
Morgan Stanley advisors can now offer bitcoin and other digital asset funds from big companies like BlackRock and Fidelity. The bank plans to add more options soon. Morgan Stanley will also allow direct trading of bitcoin, ether, and solana on its E-Trade platform, possibly starting next year.
Other Big Firms Join the Trend
Other large companies like BlackRock and JPMorgan are also expanding their work with digital assets. BlackRock’s iShares Bitcoin Trust is its most successful ETF, managing nearly $100 billion. Even firms like Vanguard, which were once cautious about bitcoin, are now reconsidering as demand grows.
Support from U.S. Regulators
The U.S. government is becoming more open to bitcoin. In August, President Donald Trump signed an executive order to help 401(k) and 403(b) plans include alternative assets like bitcoin. This order asks the Department of Labor and the SEC to make new rules within 180 days. These rules will make it easier for retirement plans to add digital assets.
Since then, regulators have shown more support for bitcoin in retirement accounts.
Morgan Stanley’s Advice on Digital Assets
The bank’s Global Investment Committee (GIC) says clients should keep digital assets to about 4% of their total portfolio. This depends on each person’s risk tolerance and goals.
Lisa Shalett, Morgan Stanley’s Chief Investment Officer for Wealth Management, said digital assets are “a speculative and increasingly popular asset class.” She added that many investors will want to explore them, but not everyone should.
The committee also recommends clients rebalance their portfolios every three months. This helps keep the right amount of bitcoin and other digital assets, especially during market ups and downs.
Competing with Popular Platforms
By opening bitcoin to all clients, Morgan Stanley hopes to compete with platforms like Coinbase and Robinhood. These platforms attract many younger investors who want easy access to cryptocurrencies.
This move shows that traditional banks are ready to offer more digital asset options to a wider group of investors.
