- Morgan Stanley will allow cryptocurrency investments in all client account types, including retirement accounts, starting October 15.
- Crypto allocation was previously limited to clients with at least $1.5 million in assets and aggressive risk tolerance.
- Advisors will initially offer access to Bitcoin-focused funds such as BlackRock’s iShares Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund.
- An automated monitoring system will be used to prevent clients from overexposure to market volatility.
- The bank is considering expanding to additional digital asset products in the future.
Morgan Stanley has announced that, from October 15, all clients will be eligible to invest in cryptocurrency, including through retirement accounts. The change will enable a broader set of investors to access crypto funds beyond the previous limits.
According to a CNBC report, the bank’s advisors were informed of the new policy on Friday, and the decision was made after observing growing demand for digital assets. Previously, only those clients with at least $1.5 million in assets and a high risk tolerance could invest in crypto through taxable brokerage accounts.
The policy will initially focus on Bitcoin, with clients able to access specific Bitcoin investment funds. These include BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), which both track Bitcoin’s performance and have increased in value by over 25% this year as Bitcoin has reached new highs.
To manage client risk, Morgan Stanley will introduce an automatic monitoring system designed to prevent excessive exposure to cryptocurrency due to its price volatility. Earlier this month, the bank recommended a maximum crypto allocation of 4% for its most aggressive portfolios. According to CNBC, the firm is also considering expanding its offerings to include other digital assets and crypto-related exchange-traded products.
Banks have shown increased interest in cryptocurrency, especially in a favorable U.S. regulatory environment. For example, Citi Ventures recently made a direct investment in BVNK, a stablecoin infrastructure startup, and is exploring products like stablecoins and digital asset custody solutions, as reported by CNBC. Industry observers note the possibility that other major investment banks could adopt similar policies in the near future.
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