Morgan Stanley, one of the world’s largest asset management companies, is opening up access to Bitcoin to all of its clients. This is a historic move by a major US bank into digital assets.
According to CNBC, starting October 15, Morgan Stanley advisors will be able to market Bitcoin funds to any client, regardless of net worth, risk tolerance, or account type. This includes IRAs and 401(k)s that were previously prohibited from exposing Bitcoin.
Previously, only customers with at least $1.5 million in assets and an “aggressive” risk profile could invest in Bitcoin through their banks.
Those restrictions have now been lifted. Millions of Morgan Stanley customers, from retirees to first-time investors, will soon be able to add Bitcoin to their portfolios.
This is a major shift for Morgan Stanley’s $8.2 trillion wealth management business and reflects a broader trend across Wall Street that traditional financial institutions are becoming more comfortable with digital assets.
The firm tells advisors it uses an automated monitoring system to ensure clients don’t become too concentrated in any asset class. These systems limit risk-taking while allowing more investors to get into Bitcoin.
The changes will allow advisors to offer Bitcoin and other digital asset funds from BlackRock and Fidelity, with the bank expected to add more in the future. Morgan Stanley plans to allow direct trading of Bitcoin, Ether, and Solana on its E-Trade platform, possibly next year.
Related: Morgan Stanley to start trading Bitcoin on E*Trade in 2026
Other major companies such as BlackRock and JPMorgan are also deepening their involvement in the digital asset space. BlackRock’s iShares Bitcoin Trust (IBIT) is the firm’s most profitable ETF, with nearly $100 billion in assets under management.
Even companies that were skeptical of Bitcoin, such as Vanguard, are reportedly reconsidering their stance as investor demand grows.
This comes as the regulatory environment in Washington becomes more friendly.
In August, President Donald Trump signed an executive order directing the Department of Labor and the SEC to make it easier to include alternative assets such as Bitcoin, gold, and private equity in 401(k) and 403(b) plans.
The order does not immediately change the law, but it does set a 180-day deadline for new proposals to lower legal hurdles for plan sponsors who want to add digital assets.
Since then, U.S. regulators have been active in implementing Bitcoin in retirement accounts.
Morgan Stanley’s Global Investment Committee (GIC) has clarified how clients should approach digital assets. The bank recommends customers limit their exposure to digital assets to 4% of their total portfolio, depending on their risk tolerance and goals.
Lisa Charette, Morgan Stanley’s chief investment officer for wealth management, said the committee described digital assets as “a speculative and increasingly popular asset class that many, but not all, investors are looking to explore.”
The committee recommends that clients rebalance their portfolios on a quarterly basis to maintain appropriate levels of exposure and avoid getting caught out in times of market volatility.
By opening up access to Bitcoin, Morgan Stanley aims to compete with platforms like Coinbase and Robinhood that are attracting younger investors.
