Morgan Stanley just made a massive move by formally recommending cryptocurrency allocations in certain client portfolios, marking a huge shift in how mainstream finance views digital assets. The bank’s Global Investment Committee issued guidelines suggesting up to 4% crypto exposure for aggressive growth portfolios and 2% for balanced ones.
This is coming from a firm that manages $2 trillion in client wealth through roughly 16,000 financial advisors. Bitwise CEO Hunter Horsley called it “huge” and said we’re officially entering the mainstream era for crypto in professional portfolio management.
The timing couldn’t be better, dropping right as Bitcoin smashed through $125,000 to hit a new all-time high. Morgan Stanley’s analysts are now calling Bitcoin “digital gold” because of its scarcity and growing presence in institutional treasuries and ETFs.
The bank wasn’t completely throwing caution to the wind though. They made it clear that portfolios focused on wealth preservation and income generation should have zero crypto exposure because of potential volatility during economic stress. But the fact they’re including digital assets at all in official guidance is a turning point.
Data from Glassnode shows Bitcoin exchange balances just hit a six-year low, suggesting investors are accumulating hard and holding tight. Analysts think this broader shift toward Bitcoin and gold reflects growing appetite for scarce assets as inflation picks back up and economic uncertainty deepens.
Morgan Stanley’s move basically validates what crypto believers have been saying for years – digital assets deserve a spot in serious investment portfolios.
Conclusion
Morgan Stanley recommended up to 4% crypto allocation in growth portfolios, marking major institutional shift as Bitcoin hit $125,000 and exchange balances reached six-year lows.
Also Read: Bitcoin Uptober
