Morgan Stanley expands crypto fund access for all wealth clients
Morgan Stanley announced on October 10 that starting October 15, its financial advisors can offer cryptocurrency funds to any wealth management client, regardless of account type or asset level. This policy shift removes prior restrictions limiting access to high-net-worth individuals with aggressive risk profiles. The change aligns with evolving U.S. regulatory approvals for crypto exchange-traded funds.
Morgan Stanley, which manages $8.2 trillion in client assets, previously restricted crypto fund offerings to clients with at least $1.5 million in assets and an aggressive risk tolerance, confining them to taxable brokerage accounts. The new guidelines, effective October 15, allow advisors to pitch these investments in any account, including retirement plans like 401(k)s. This expansion follows President Donald Trump's executive order opening alternatives in retirement accounts.
To mitigate risks, the firm will implement automated monitoring to prevent excessive concentration in crypto holdings. Its global investment committee recommends a maximum initial allocation of up to 4%, depending on client objectives. Currently, advisors are limited to bitcoin funds from BlackRock and Fidelity, though the firm is evaluating additional options amid the Securities and Exchange Commission's recent approval of generic listing standards for spot crypto ETFs.
"Within the next 60 to 90 days, we’ll have a dozen or so new crypto-oriented products tracking things like solana or XRP," said ETF expert David Nadig on CNBC’s “ETF Edge.” Lisa Shalett, chief investment officer for wealth management, noted in an October 1 report that the committee “considers cryptocurrency as a speculative and increasingly popular asset class that many investors, but not all, will seek to explore.”
Morgan Stanley has gradually embraced digital assets, offering bitcoin funds to wealth clients for about four years and planning crypto trading on its E-Trade platform—initially for bitcoin, ether, and solana—in the first half of 2026 via a partnership with Zerohash. A CoinShares survey from February found 62% of advisors view recommending bitcoin as misaligned with fiduciary duties, though 88% are more optimistic following SEC ETF approvals. Conversely, 82% of wealthy investors prefer advisors providing crypto guidance, despite concerns over credibility raised by nearly one-third. “They’re looking for advisors who can serve as strategic partners, not product pushers,” said Jean-Marie Mognetti, CEO of CoinShares.