Categories Uncategorized

Morgan Stanley Endorses Crypto as Wall Street Warms Up to Digital Assets

Wall Street giant Morgan Stanley has encouraged investors to consider allocating between 2% and 4% of their portfolios to cryptocurrencies. The bank’s latest recommendation marks a notable shift in Wall Street’s tone toward digital assets, with Bitcoin taking the spotlight as a limited-supply asset often compared to gold in digital form.

The bank’s Global Investment Committee (GIC) released new portfolio allocation recommendations on October 5. According to the guidelines, portfolios focused on “opportunistic growth” could hold as much as 4% in crypto.

Hunter Horsley, CEO of Bitwise, called the move a milestone moment for the crypto asset industry. He noted that the GIC report was designed to help Morgan Stanley’s network of 16,000 financial advisors manage over $2 trillion in client wealth with updated guidance on including crypto. Horsley added that the firm’s endorsement shows how digital currencies are moving further into the mainstream investment world.

The announcement sparked mixed reactions within the cryptocurrency community on X (formerly Twitter). Some investors applauded the recommendation as a strong show of confidence from a major financial player, while others dismissed it as a modest step that arrived later than expected.

For investors with “balanced growth” goals, the bank suggested a more conservative 2% crypto allocation. However, it remained cautious for clients focused on “income” or “wealth preservation” portfolios, advising no exposure to digital assets for these groups.

The GIC report also noted that exchange-traded products (ETPs) are becoming a practical entry point for investors who prefer a regulated alternative to direct cryptocurrency ownership. This structured access offers traditional investors a safer way to participate in the expanding world of digital assets without holding the tokens themselves.

The report follows Morgan Stanley’s earlier decision in September 2025 to introduce cryptocurrency trading on its E-Trade platform through a collaboration with Zerohash. A company representative confirmed that users would initially have access to trading Ether, Solana, and Bitcoin.

It also comes as Bitcoin (BTC) continues to gain traction among institutional and retail investors alike. The digital asset recently crossed the $125,000 threshold, surpassing its August peak of $124,500. Meanwhile, centralized exchanges have reported the lowest BTC reserves in six years, indicating reduced supply as market demand strengthens.

Morgan Stanley’s measured approach reflects a growing acknowledgment of crypto’s potential among major financial players. By suggesting modest portfolio exposure, the bank recognizes the appeal of digital assets while maintaining awareness of their volatility.

As BTC reserves on centralized exchanges dwindle, investor interest is likely to be diverted towards crypto-accumulation platforms like American Bitcoin Corp. (NASDAQ: ABTC) in a bid to include digital assets in their portfolios.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN

Share
Published by
CryptoCurrencyWire

Recent Posts

Mesh Leans on Visa to Enable Seamless Crypto Use

Mesh, a crypto payments infrastructure company, has teamed up with Visa in a move aimed…

3 days ago

EU Signs Warsaw Convention Protocol to Combat Crypto Crime

European countries and their international partners are moving to strengthen measures against the use of…

4 days ago

China to Create Nationwide Blockchain Network to Digitize Economy

China is moving to strengthen the digital foundations of its economy, with a new policy…

6 days ago

Fear and Greed Index Slides as BTC Drops Further

Bitcoin’s strong summer rebound appears to be losing momentum, with investor sentiment turning more cautious…

1 week ago

US Government Moves Crypto Worth at Least $100M

Crypto wallets believed to be linked to the U.S. federal government recently transferred digital assets…

2 weeks ago

Crypto Donors Jittery Over Midterm Spending After Clarity Act Failure

The U.S. crypto sector is facing a difficult political calculation as November’s midterm elections approach.…

2 weeks ago