Morgan Stanley Advises Financial Advisors to Offer Limited Cryptocurrency Exposure to Clients
NEW YORK – October 5, 2025 – Morgan Stanley’s Global Investment Commitee (GIC) issued a special report on October 1 recommending that financial advisors consider allocating up to 4% of client portfolios to virtual assets – including cryptocurrency – depending on the client’s risk tolerance. The move signals a growing acceptance of digital assets within customary financial institutions.
the GIC, which supports a network of 16,000 financial advisors managing approximately $2 trillion in client assets, categorized allocation recommendations by risk level. Portfolios designated ‘Wealth Conservation (Risk Level 1)’ and ‘Income Focus (2)’ should hold 0% in virtual assets. Allocations are suggested at 2% for ‘Balanced Growth (3)’, 3% for ‘Market Growth (4)’, and a maximum of 4% for ‘Opportunistic Growth (5)’.
Morgan Stanley’s report characterizes virtual assets as “speculative but increasingly popular assets,” drawing a comparison to “digital gold.” The GIC also advises regular portfolio rebalancing to manage exposure and mitigate potential volatility.
This policy aligns wiht standards already adopted by other major Wall Street firms. BlackRock has indicated a 1-2% Bitcoin allocation is “reasonable,” while Grayscale’s modeling suggests an optimal proportion of around 5%. Fidelity currently offers virtual asset exposure through IRAs and etps, analyzing that a 2-5% allocation could positively impact portfolio value in a bullish market.
Vanguard remains comparatively conservative,having previously refused to list spot Bitcoin ETFs,citing concerns about the asset class’s maturity. However, recent reports suggest Vanguard is reconsidering allowing trading in virtual asset-related ETFs pending regulatory approval.
