Key Takeaways
- All clients will be able to invest in crypto funds at Morgan Stanley since October 15.
- The company is eliminating its minimum asset and risk-tolerance restriction of $1.5 million.
- BlackRock and Fidelity’s Bitcoin ETFs will be the first to be provided by advisors and other products are in the pipeline.
Morgan Stanley, he world’s largest wealth management company with $8 trillion in AUM, is opening the doors to Bitcoin and crypto investment to all its customers, according to reports. Starting on October 15, the financial advisors of the bank will be allowed to sell crypto funds to all clients. This includes retirement and non-taxable accounts, which will mark a major change in its policy regarding digital assets.
Morgan Stanley Opens Bitcoin, Crypto Investment For Clients
In the past, crypto exposure was offered in taxable brokerage accounts to only those clients with a risk profile of “aggressive,” where they had at least $1.5 million in investable assets. The most recent step lifts those limitations and marks a rise in the adoption of digital assets in conventional finance.
The growth is in the midst of a regulatory and political change in the U.S., as observers in the industry say it has more of a crypto-friendly approach within the current President Donald Trump administration. Morgan Stanley has been gradually expanding its work with digital assets, recently announcing its intention to allow trading of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) on its E-Trade business unit.
Morgan Stanley has over $8.2 trillion in assets under management, making it a household name as a powerhouse when it comes to wealth and investment management. The recent move by the firm is an indication of its effort to stay competitive with the emerging trading platforms such as Coinbase and Robinhood, which have been popular among younger and more crypto-sophisticated investors.
Although it is making accessibility to every client, the bank is also implementing precautions. The sources are privy to the issue as Morgan Stanley will implement automated mechanisms to make sure that customers do not have too much of volatile investments like cryptocurrencies. These actions will be aimed at achieving a balance between access and risk management.
The Roadmap For Crypto Exposure
The global investment committee of the bank has provided a roadmap for the crypto exposure of the clients in a recent report on investment strategy. The committee proposed a possible allocation “of up to 4%,” based on personal investment objectives that range from “wealth conservation” to “opportunistic growth,” according to a CNBC report.
The Chief Investment Officer of Morgan Stanley, Lisa Shalett, explained cryptocurrencies as a “speculative and increasingly popular asset class that many investors, but not all, will seek to explore.”
First, it will enable the advisors to suggest BTC-related funds of BlackRock and Fidelity. Nevertheless, according to the insiders, the firm is keeping a keen eye on the sector and might shortly extend its list to other products based on other digital assets. Customers, in their turn, will also be allowed to make investment requests in any crypto-related exchange-traded fund that is found on the list of approved Morgan Stanley products.
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