Morgan Stanley to open crypto access to all client accounts, including retirement plans: CNBC
Morgan Stanley will open access to crypto funds across all client accounts starting Oct. 15, including retirement plans, CNBC reported Friday. The move eliminates the wealth hurdle previously set for investors seeking digital-asset exposure.Until now, only clients with at least $1.5 million in assets and an “aggressive” risk profile could add bitcoin or ether funds, and only through taxable brokerage accounts.Advisors will soon be able to recommend crypto vehicles from issuers like BlackRock and Fidelity to a far broader client base, according to CNBC's sources.Since winning U.S. approval in 2024, spot bitcoin and ether ETFs have drawn a combined $77 billion in inflows according to The Block ETF data — a market most Morgan Stanley clients were effectively shut out of until now.Shift in WashingtonThe shift comes as Washington D.C. continues to loosen restrictions on alternative assets in retirement portfolios.President Donald Trump signed an executive order in August directing the Department of Labor and Securities and Exchange Commission (SEC) to make it easier for 401(k) plans to include crypto, gold, and private equity.While the order itself doesn’t change the law, it rescinded earlier guidance discouraging crypto in retirement accounts and set a 180-day timeline for agencies to propose new rules or safe harbors.The U.S. Labor Department has since issued advisory opinions signaling it will lower legal risks for plan sponsors that add such assets.Crypto allocationsMorgan Stanley, an $8.2 trillion wealth manager, has also been publishing internal guardrails for the asset class.In an Oct. 1 note, its Global Investment Committee suggested allocations of up to 4% in model portfolios depending on risk tolerance, ranging from zero for conservative investors to a maximum of 4% in “opportunistic growth” accounts.The committee described crypto as “speculative and increasingly popular,” while stressing the need for regular rebalancing to avoid concentration risk.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.