Morgan Stanley, one of the largest wealth management firms globally, has reportedly informed its financial advisers that all clients will be able to invest in cryptocurrency funds starting on October 15, as reported by CNBC.
Advisers will be able to offer crypto funds to clients with individual retirement accounts (IRAs) and 401(k)s, representing a significant change from prior policies that limited access to high-net-worth investors with assets exceeding $1.5 million and an aggressive risk outlook.
This shift could free up millions of dollars currently invested in other assets, allowing some of that capital to enter the cryptocurrency market. As of June 30, 2023, U.S. retirement assets totaled roughly $45.8 trillion, with IRAs holding about $18 trillion and 401(k) plans approximately $9.3 trillion, according to the Investment Company Institute’s latest quarterly update.
Morgan Stanley’s Wealth Management division employs around 16,000 financial advisers throughout its advisory network and manages approximately $6.2 trillion in assets, serving more than 19 million client relationships, as per the company’s 2025 Annual Shareholder Letter.
To prevent clients from taking on excessive exposure to cryptocurrency, Morgan Stanley will implement automated monitoring systems, and for now, advisers will exclusively be able to offer Bitcoin funds managed by BlackRock and Fidelity. CNBC cited sources familiar with the policy, stating the company is also observing the market for additional crypto products.
“Institutions are beginning to view digital assets not merely as speculative investments but as a legitimate asset class that requires structured access points,” remarked Jeff Feng, co-founder of Sei Labs, when asked about the policy.
As crypto-native platforms bring tokenized assets on-chain and asset managers establish new means of exposure, “the line between traditional and on-chain finance is continuously becoming indistinct.” Consequently, digital assets are “gradually becoming a typical component of diversified portfolios,” Feng added.
In October, a report from Morgan Stanley’s Global Investment Committee recommended a cautious stance on cryptocurrency, advising a maximum of 4% exposure for high-risk “Opportunistic Growth” portfolios, 2% for “Balanced Growth,” and none for income or preservation strategies.
Related: Swiss crypto bank Amina to offer Polygon’s POL staking with rewards up to 15%
Crypto in Wealth Management
Morgan Stanley’s shift in policy occurs as several of the world’s largest asset management firms expand their engagement with digital assets.
In April, Fidelity introduced a new set of retirement accounts providing nearly zero-fee access to cryptocurrency investments for Americans. These offerings include a traditional IRA along with two Roth IRA options, enabling users to buy and sell Bitcoin.
In June, global banking and financial services giant JPMorgan announced that it would permit trading and wealth management clients to use crypto exchange-traded funds (ETFs) as collateral for loans, according to Bloomberg. The bank further indicated it would consider clients’ crypto holdings when assessing overall net worth.
Asset manager BlackRock is also exploring options to expand its cryptocurrency offerings, following the success of its spot Bitcoin ETF, which has generated $245 million in fees over the past year.
On September 11, Bloomberg reported that BlackRock is investigating ways to tokenize ETFs on blockchain networks, potentially allowing for 24/7 trading and serving as collateral within decentralized finance (DeFi) applications.
Magazine: EU’s privacy-killing Chat Control bill delayed — but the battle isn’t over
