Morgan Stanley opens door to Bitcoin, Ethereum investments for clients

Morgan Stanley plans to allow all its clients to begin gaining exposure to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), expanding its shift towards digital asset investments.

Morgan Stanley eyes crypto exposure for clients

Morgan Stanley is set to broaden its crypto offerings, giving all wealth management clients access to digital assets, according to a CNBC report on Friday. 

Starting October 15, the bank's financial advisors will be able to offer crypto fund investments to all clients, including those with retirement accounts.

The move broadens access to include a wider range of investors, extending beyond high-net-worth clients who were previously the only investor class eligible to gain crypto exposure. Until now, the option was limited to those with at least $1.5 million in assets held in a taxable brokerage account.

Morgan Stanley will reportedly rely on an automated monitoring system to ensure clients do not become overly exposed to the volatile crypto market.

Currently, advisors can only pitch Bitcoin funds from BlackRock and Fidelity, although Morgan Stanley is monitoring the market for potential additions, including other types of crypto products. CNBC noted that clients can also request to invest in any listed crypto exchange-traded funds (ETFs).

The decision follows Morgan Stanley's announcement in September that it would enable Bitcoin, Ethereum and Solana (SOL) trading through its E*Trade platform in partnership with crypto infrastructure provider Zerohash.

The bank's global investment committee recently released a report recommending an initial crypto allocation of up to 4%, depending on investors' objectives, ranging from wealth preservation to opportunistic growth.

The committee noted that cryptocurrencies are becoming an increasingly relevant asset class that some investors may consider as part of a diversified portfolio.

The firm continues to drive its push into crypto, joining a wave of top banks now offering clients access to crypto investments. The shift toward digital assets follows the ongoing positive regulatory developments surrounding the crypto industry.

Other firms like JPMorgan and Charles Schwab are also exploring ways to allow customers to begin crypto investments. JPMorgan announced in June that it plans to allow trading and wealth-management clients to use crypto-focused assets as collateral for loans, starting with BlackRock's iShares Bitcoin Trust (IBIT).