For accounts built around income or capital preservation, the guidance points to 0% crypto exposure.
The bank tells its advisors that crypto belongs in the “speculative” part of a plan. Based on reports, the recommended exposure is meant to be modest and controlled.
Morgan Stanley prefers clients access crypto through exchange-traded products rather than buying every coin directly. That keeps custody and reporting simpler, the guidance says. It also means brokers can use ETFs and ETPs to give clients exposure without requiring them to manage wallets.
This is huge.
New Special Report from Morgan Stanley GIC:
“we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multiasset portfolios.”
Rebalancing is part of the advice. Reports show the firm recommends checking and trimming positions on a set schedule so that a crypto stake does not balloon during a rally.
Analysts and advisors reacted as expected. Some welcomed the clarity and the firm’s limits. Others said the guidance still leaves open big questions about regulation and long-term risk.
The move reflects a wider trend among big wealth managers that are opening controlled doors to digital assets while still warning clients about volatility and legal uncertainty.
Large wealth firms set norms for many investors. When a major bank offers concrete percentages, it can shape what advisors recommend across the market.
Based on Morgan Stanley’s view, crypto will likely remain a niche allocation for the foreseeable future. The firm’s language stresses caution and individual fit.
Investors who want exposure will find managed options and clearer paths to trade. But the bottom line is unchanged: only those who can accept big swings should consider putting money into these assets.
Featured image from Unsplash, chart from TradingView
