Catenaa, Tuesday, October 07, 2025-Morgan Stanley’s Global Investment Committee has recommended that cryptocurrency allocations in client portfolios be capped at 4%, joining Wall Street peers such as BlackRock, Grayscale, and Fidelity in setting formal guidelines for digital asset exposure.
In a note released October 1, the bank described crypto as a “speculative and increasingly popular” real asset, comparable to digital gold. It advised that conservative and income-oriented investors avoid crypto entirely, while “opportunistic growth” portfolios could allocate up to 4%, with regular rebalancing to limit volatility during rallies.
The move highlights a broader institutional shift toward structured crypto adoption.
BlackRock previously suggested a 1% to 2% allocation to bitcoin as “reasonable,” while Grayscale’s models favor up to 5%.
Fidelity has published research supporting crypto exposure between 2% and 5% under bullish scenarios and already offers access through retirement accounts and spot exchange-traded products.
Charles Schwab and Vanguard, once among the most resistant, are showing signs of softening. Schwab is preparing to launch spot bitcoin and ether trading in 2026, while reports indicate Vanguard may soon allow crypto-focused ETF trading under its new CEO, Salim Ramji, a former BlackRock executive seen as more open to digital assets.
Morgan Stanley’s decision marks another step in the normalization of crypto across major financial institutions, reflecting growing client interest and shifting regulatory confidence in the asset class.
