Morgan Stanley Expands Crypto Access To All Clients, Including Retirement Accounts: Report

Morgan Stanley (MS) is reportedly expanding access to cryptocurrency investments for all clients, allowing such allocations in any account type, including retirement accounts.

According to a CNBC report, citing people familiar with the matter,  financial advisors were briefed on the policy change on Friday, with the new rules taking effect on October 15. Morgan Stanley’s stock edged 0.3% higher in morning trade. On Stocktwits, retail sentiment around the bank remained in ‘bullish’ territory amid ‘high’ levels of chatter. 

Previously, crypto investments were restricted to clients with aggressive risk tolerance and at least $1.5 million in assets who opted for taxable brokerage accounts, the report said. Earlier this month, Morgan Stanley advised capping cryptocurrency allocations at up to 4% in its most aggressive client portfolios.

The report said the financial giant plans to use an automated monitoring system to prevent clients from becoming overexposed to the cryptocurrency market due to its volatility. Advisors will initially be limited to offering Bitcoin (BTC)-focused funds, such as BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). Both Bitcoin ETFs have gained more than 25% this year as Bitcoin’s price has surged to record highs.

However, Morgan Stanley is reportedly evaluating other potential crypto offerings, including additional coins and digital asset products, for future inclusion. Clients will also be able to request placement in any listed cryptocurrency exchange-traded product, according to the report. 

One retail trader on Stocktwits noted that other investment banks may follow a similar approach in the coming months.

Banks have increasingly moved into cryptocurrency investments amid a crypto-friendly regulatory environment under the Trump administration. On Thursday, Citi Ventures (CITI) reportedly made a direct investment in BVNK, a stablecoin infrastructure startup. The bank is also exploring a potential launch of its own stablecoin and developing custody solutions for digital assets.

Read also: EightCo Stock Jumps After Launch Of AI Authentication Pilot For Enterprises

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