Morgan Stanley opens crypto investments to all clients
New policy reflects growing mainstream acceptance of digital assets while emphasizing careful limits on client exposure and risk.
Key Takeaways
- Morgan Stanley takes a major step toward mainstream crypto adoption by lifting restrictions across all accounts.
- To ensure prudent exposure levels, Morgan Stanley will introduce automated monitoring to track client holdings in digital assets.
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Morgan Stanley will allow all clients, including those with retirement accounts, to invest in crypto funds starting October 15, CNBC reported today.
The leading wealth manager, which oversees more than $8 trillion in client assets, began allowing its financial advisors to offer Bitcoin exchange-traded funds (ETFs) to high-net-worth clients last August.
However, eligibility was limited to investors with a net worth of at least $1.5 million, an aggressive risk tolerance, and taxable brokerage accounts, excluding retirement portfolios.
The bank will rely on an automated system to monitor client portfolios and guard against concentrated exposure to crypto.
For now, advisors can recommend only Bitcoin funds from BlackRock and Fidelity, though Morgan Stanley is considering expanding offerings to include Ether or Solana products.
Morgan Stanley is deepening its crypto strategy to meet growing client demand and stay competitive. The bank’s global investment committee recently recommended a maximum initial crypto allocation of up to 4%, varying based on investment goals.
Morgan Stanley’s decision to remove restrictions on client crypto access comes just weeks after it announced plans to enable direct trading of Bitcoin, Ether, and Solana through its E-Trade platform.
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