Morgan Stanley Lifts Crypto Restrictions: Expands Access to All
In a significant shift in its approach to cryptocurrencies, Wall Street giant Morgan Stanley is set to open the floodgates to digital asset investments for its vast client base. As the bank looks to capitalize on growing demand for crypto exposure, the $8 trillion asset manager has announced plans to lift earlier restrictions that limited access to crypto funds to select clients with high-risk tolerance and substantial assets.
Starting October 15, Morgan Stanley’s arm of financial advisors will be empowered to pitch crypto investments to any client, marking a major milestone in the mainstream adoption of digital assets. With $8 trillion in assets under management, Morgan Stanley’s move is poised to send ripples throughout the financial economy, underscoring the growing recognition of cryptocurrency as a viable investment class.
Morgan Stanley Expands Access to Crypto Investments
According to the latest CNBC report, Wall Street behemoth Morgan Stanley has announced plans to lift earlier restrictions on crypto investments. The bank intends to broaden its crypto footprint, now enabling all its clients to invest in digital assets.
Previously, the bank restricted crypto investment to clients with at least $1.5 million in assets and an aggressive risk tolerance. With the latest amendments, the platform allows all clients to access crypto funds and would prevent them from becoming over-exposed to the volatile crypto market, using an automated monitoring system. From October 15, advisors will be authorized to offer crypto fund investments to all clients, including those with retirement accounts.
Morgan Stanley’s Push into Crypto
The financial giant has been steadily expanding its presence in the digital asset space over the past years. The bank first dipped its toes the waters in 2021 by offering Bitcoin investment funds to its wealthy clients. It continued to build momentum in 2024 by allowing financial advisors to promote Bitcoin ETFs to clients.
This year, the pace of progress has quickened, with CEO and Chairman Ted Pick outlining plans to work closely with regulators to safely integrate crypto offerings. Pick said, “For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors.”
Crypto Trading Services in 2026
Notably, this development comes on the heels of Morgan Stanley’s plans to start offering crypto trading services by the first half of 2026. Collaborating with crypto start-up ZeroHash, the bank plans to launch trading services initially for Bitcoin, Ethereum, and Solana. This move reflects the growing trend of traditional financial firms integrating cryptocurrency services, following in the footsteps of other major players like JPMorgan, which became the first US bank to test crypto. Recently, JPMorgan partnered with Coinbase earlier this year to enhance crypto purchasing capabilities for its customers.
4% Bitcoin Allocation
Significantly, the latest move is part of the financial institution’s broader venture into the crypto space. The firm has taken major steps to solidify its position in the crypto market. Recently, Morgan Stanley announced its plans to put 2-4% of investors’ portfolios into Bitcoin. Their report stated,
“While the GIC allocation models will not include explicit allocations to cryptocurrency, we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multi-asset portfolios. While the emerging asset class has experienced outsized total returns and declining volatility over recent years, cryptocurrency could experience more elevated volatility and higher correlations with other asset classes in periods of macro and market stress.”
Shifting Regulatory Landscape
The US crypto industry has gained increased momentum, particularly after the launch of Bitcoin ETFs in early 2024, with major Wall Street players like BlackRock and Fidelity spearheading the charge. The subsequent approval of Ethereum ETFs and the introduction of other funds have further fuelled interest.
The current administration under President Donald Trump has been more receptive to the cryptocurrency industry, pushing for supportive laws and reducing regulatory enforcement, marking a significant shift from the previous restrictive stance. This changing regulatory environment has significantly contributed to the growing acceptance of cryptocurrencies amid these Wall Street giants like Morgan Stanley.
