The bank’s analysts now view the world’s largest crypto as a “scarce asset similar to digital gold,” recommending an allocation of 2% to 4% depending on risk appetite.
Given that Morgan Stanley’s GIC oversees strategy for about 16,000 financial advisors managing roughly $2 trillion in client wealth, even modest adoption could introduce tens of billions in new inflows to Bitcoin.
Consequently, the bank’s recommendation could translate to as much as $40 to $80 billion in potential fresh investment into BTC.
According to the guidance, investors with Opportunistic Growth portfolios (i.e., those comfortable with greater volatility) can hold up to 4% in Bitcoin or similar digital assets.
Meanwhile, those with Balanced Growth strategies are advised to keep exposure below 2%, while portfolios focused on preserving capital or generating income should avoid crypto entirely.
Still, GIC cautioned that Bitcoin could experience sharper swings during macroeconomic stress, though it acknowledged that the asset’s volatility has significantly reduced in recent years.
Under that framework, qualified investors with at least $1.5 million in net worth and a high risk tolerance were allowed to invest in Bitcoin.
Morgan Stanley’s recommendation perfectly illustrates the broader reappraisal of digital assets within the traditional financial ecosystem.
Industry observers see these shifts as a cultural turning point that would spark further adoption and growth for the emerging asset class.
“The shift from ‘stay away’ to ‘flexibly allocate’ in traditional wealth management language is absolutely massive for adoption honestly.”
