Wall Street Shifts: Morgan Stanley Formally Suggests Involvement in Crypto, Particularly Bitcoin
Morgan Stanley, one of the longest-standing investment firms globally, has recommended that clients dedicate 2-4% of their investment portfolios to cryptocurrency. With a keen focus on BTC, described as a “limited asset, similar to digital gold,” this recommendation marks a shift in Wall Street’s perspective on digital assets.
On October 5, 2025, Morgan Stanley’s Global Investment Committee (GIC) officially published a range of guidelines for portfolio allocation, suggesting “opportunistic growth portfolios could include up to 4% in crypto.” Simultaneously, Bitcoin’s price (BTC) surged to a ledger high overnight, peaking at approximately $125,700 during the Asian trading session on Sunday before retreating to the lower $123,000s.
Regarding Morgan Stanley’s new approach, Bitwise CEO Hunter Horsley stated, “This is a significant development. The new Special Report from Morgan Stanley GIC indicates: ‘we aim to assist our Financial Advisors and clients, who may be open to allocating cryptocurrency as part of their diversified portfolios.’ The GIC advises 16,000 advisors overseeing $2 trillion in client assets and wealth.”
Horsley believes that crypto is entering a phase of increased mainstream acceptance.
This is a significant development.
New Special Report from Morgan Stanley GIC:
“we aim to assist our Financial Advisors and clients, who may be open to allocating crypto asset as part of their diversified portfolios.”
GIC provides guidance to 16,000 advisors managing $2 trillion in client assets and wealth… pic.twitter.com/RBWFxlRNkS
— Hunter Horsley (@HHorsley) October 5, 2025
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Is Morgan Stanley Delayed? GIC Views Crypto As An “Increasingly Gaining momentum Asset Class”
The crypto community on X is split over the institution’s guideline of “up to 4%.” While some appreciate the initiative, others criticize it as “too late” and “too insufficient,” referring to the 4%.
For “balanced growth,” Morgan Stanley suggests a maximum of 2% crypto allocation. Nonetheless, it maintains a cautious stance, recommending a 0% crypto allocation for “wealth preservation” and “income” portfolios.
In September 2025, Morgan Stanley also made known its plan to provide crypto trading on the E*Trade protocol via a collaboration with Zerohash. A representative from Morgan Stanley confirmed that when launched, E*Trade clients would have access to trade Bitcoin, the leading crypto asset, in addition to ether and solana.
Read More: BTC Price Prediction: BTC Price Sets New All-Time High
BTC Reaches New All-Time High
Bitcoin’s advancement to $125k extended its eight-day winning streak and occurred in conjunction with a surge in spot ETF inflows alongside a depreciating US dollar due to renewed fears of a potential government shutdown.
This movement surpassed Bitcoin’s prior peak from mid-August, representing another achievement in the asset’s most vigorous performace since early 2024. Price activity became volatile around 12:45 am ET, as BTC spiked to new heights before retracting a few thousand dollars.
Will Morgan Stanley’s price floor elevate BTC buyer interest further?
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Key Takeaways
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Historical trends indicate that institutional investments often come before significant crypto market rallies.
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The adoption by institutions has long been the “holy grail” for crypto asset fans. When firms like MicroStrategy, Tesla, and now leading wealth managers incorporate Bitcoin into their balance sheets or client portfolios, it serves as a robust endorsement that can channel billions of dollars toward new investments.
The post Wall Street Pivots: Morgan Stanley Officially Recommends Exposure To Crypto, Especially Bitcoin appeared first on 99Bitcoins.
