Morgan Stanley has set a new benchmark in wealth management by recommending a **maximum 4% allocation to cryptocurrencies** for opportunistic, growth-focused portfolios. This approach mirrors portfolio models from other financial giants, such as BlackRock and Grayscale, signaling a growing acceptance of digital assets across mainstream finance.

The bank’s Global Investment Committee now regards Bitcoin as “digital gold,” suggesting that its scarcity and increasingly mature market merit modest allocations for select clients. For conservative portfolios, Morgan Stanley advises just a 2% crypto exposure, while income-focused or capital preservation accounts are steered away entirely from the asset class.

Crypto remains classified as a **speculative investment** within Morgan Stanley’s portfolio strategy. Advisors are encouraged to access exposure primarily through regulated vehicles like crypto exchange-traded products (ETPs) and ETFs rather than direct coin ownership, which simplifies custody and reporting requirements.

A key part of this guidance is disciplined **portfolio rebalancing**. Morgan Stanley cautions that crypto positions should not swell out of proportion during market rallies. Instead, allocations must be adjusted regularly so that they continue to align with clients’ risk tolerance and long-term goals, rather than reacting to price movements.

This policy accompanies broader efforts to expand crypto access for Morgan Stanley clients. The firm plans to enable crypto trading via its E*Trade platform partnership, with initial offerings including Bitcoin, Ethereum, and Solana.

Morgan Stanley’s move reflects a cautious shift in the institutional landscape, with digital assets migrating from speculative outliers to small but validated components of diversified portfolios. The bank also acknowledges ongoing **risks**, such as volatility, uncertain regulation, and potential high correlations during market stress, underscoring that crypto is best suited for those comfortable with significant risk.

With this change, Morgan Stanley joins industry leaders in setting new norms for crypto’s role in wealth management, recognizing digital assets as a legitimate—if limited—part of modern investment strategy.