Morgan Stanley to Open Full Crypto Access for Clients, Including Retirement Accounts

Wall Street Giant Expands Bitcoin and Ether Fund Offerings to All Client Tiers Amid Growing Institutional Adoption

TL;DR

• Morgan Stanley will allow all wealth-management clients, including retirement accounts, to invest in Bitcoin and Ether funds starting October 15, 2025.
• The bank’s Global Investment Committee recommends capping crypto allocations at 4% of portfolios, with exposure limited initially to BlackRock and Fidelity-managed funds.
• The move follows U.S. regulatory easing on crypto in retirement plans and positions Morgan Stanley to capture inflows from a $3.9 trillion crypto market.

Morgan Stanley is removing one of Wall Street’s last major barriers to mainstream crypto adoption by opening access to digital asset funds across all client tiers, including retirement accounts. Starting October 15, 2025, the bank’s wealth managers will be able to recommend Bitcoin and Ether fund exposure to every client—not just those with taxable brokerage accounts or high-risk profiles. The change marks a sweeping expansion from the firm’s earlier 2021 policy, which restricted crypto investments to clients holding at least $1.5 million in assets and an “aggressive” risk rating.

The move signals a decisive shift in how one of America’s largest financial institutions views digital assets. Morgan Stanley’s $8.2 trillion wealth management division is now preparing to compete directly with crypto-native brokers by offering regulated access to the asset class through funds managed by BlackRock and Fidelity. Advisors will use automated monitoring systems to prevent overexposure and maintain portfolio balance, ensuring compliance within each client’s defined risk tolerance.

The bank’s internal Global Investment Committee has issued guidelines recommending that crypto allocations be capped at up to 4% of portfolios, depending on individual risk profiles. Clients with conservative strategies are expected to hold zero exposure, while higher-risk accounts could reach the full allocation limit. An internal investment note described crypto as “speculative and increasingly popular,” but emphasized that small, diversified allocations could improve long-term portfolio performance through volatility asymmetry and low correlation to traditional assets.

Morgan Stanley’s decision comes amid an improving regulatory climate in Washington. President Trump’s August 2025 executive order instructed the Department of Labor and the SEC to create clear frameworks for including alternative assets like crypto in 401(k) plans. The directive reversed prior guidance discouraging digital asset exposure in retirement accounts and gave agencies 180 days to propose new safe harbors. The Labor Department has since issued advisory opinions suggesting it may reduce legal liability for plan sponsors that include crypto as part of diversified allocations.

The bank’s expanded access policy also aligns with surging demand for institutional-grade crypto products. Since the approval of spot Bitcoin and Ether ETFs in 2024, the combined inflows have surpassed $77 billion, underscoring how mainstream investors are integrating digital assets into broader portfolios. Morgan Stanley’s internal investment primer frames Bitcoin as a store-of-value disruptor within a $115 trillion global “money as value” market, while Ethereum and similar networks are likened to open financial platforms rivaling traditional app stores.

Executives have hinted that this broader access model is only the first step. E*Trade, Morgan Stanley’s retail brokerage arm, plans to enable direct trading of Bitcoin, Ether, and Solana in the first half of 2026 through a partnership with infrastructure provider Zerohash. The startup, now valued at over $1 billion, recently raised $104 million in a round led by Interactive Brokers with participation from Morgan Stanley and SoFi. That integration would bridge retail and wealth clients under a single digital asset ecosystem, reinforcing the firm’s long-term strategy of unifying its product pipeline across investor classes.

The timing could not be more pivotal for a market that has matured dramatically over the past two years. The global crypto price index reflects a sectoral coin market cap of about $3.9 trillion, led by Bitcoin’s $2.25 trillion share and Ethereum’s $506 billion valuation. The expansion of institutional infrastructure—from ETF approvals to custody solutions—has given traditional banks more confidence to act as intermediaries in crypto markets once deemed too volatile or opaque.

Morgan Stanley CEO Ted Pick previously described the firm’s approach as one of measured progression, saying the key question was “whether we, as a highly regulated financial institution, can act as transactors.” The new access framework appears to answer that question affirmatively. With automated controls, limited fund providers, and a clear allocation cap, Morgan Stanley is effectively building a risk-contained bridge between legacy finance and the digital economy.

By democratizing access to crypto within a regulated environment, the firm is positioning itself at the forefront of Wall Street’s gradual convergence with blockchain-based markets. While volatility, regulatory uncertainty, and concentration risk remain live concerns, the policy shift signals an institutional acceptance that crypto is now an enduring component of global portfolios—and one whose influence on the broader coin market cap and crypto price metrics is only expected to grow.

This article has been refined and enhanced by ChatGPT.