Wall Street Pivots: Morgan Stanley Officially Recommends Exposure To Crypto, Especially Bitcoin

[Ben Graham]

One of the world’s oldest investment institutions, Morgan Stanley, has advised clients to allocate 2-4% of their investment portfolios to crypto. With a strong spotlight on Bitcoin as a “scarce asset, akin to digital gold,” Morgan Stanley’s suggestion is a pivot in Wall Street’s stance toward digital assets. 

On 5 October 2025, Morgan Stanley’s Global Investment Committee (GIC) formally released a set of portfolio allocation guidelines, wherein “opportunistic growth portfolios were suggested up to 4% crypto allocation.” Meanwhile, Bitcoin price (BTC) climbed to a new all-time high overnight, reaching about $125,700 during Sunday’s Asia session before pulling back to the low $123,000 range.

Commenting on the Morgan Stanley’s pivot, Bitwise CEO Hunter Horsley said, “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 multi asset portfolios.” GIC guides 16,000 advisors managing $2 trillion in savings and wealth for clients.”

In Horsley’s opinion crypto is entering into its mainstream era. 

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."

GIC guides 16,000 advisors managing $2 trillion in savings and wealth for… pic.twitter.com/RBWFxlRNkS

— Hunter Horsley (@HHorsley) October 5, 2025

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Is Morgan Stanley Late? GIC Considers Crypto As An “Increasingly Popular Asset Class”

The crypto community on X is divided on the institute’s “up to 4%” guidance. While some welcome the move, others criticise it for “too late” and “too little” aka 4%. 

For “balanced growth,” Morgan Stanley recommends up to 2% crypto allocation. However, it is still taking a cautious approach as it recommends 0% crypto exposure for “wealth preservation and “income” portfolios.

In September 2025, Morgan Stanley also announced its decision to offer crypto trading on E*Trade platform through Zerohash tie-up. A Morgan Stanley spokesperson confirmed that at launch, E*Trade clients will be able to trade bitcoin , the world’s largest crypto token, as well as ether and solana.

Read More: Bitcoin Price Prediction: BTC Price Sets New All-Time High

Bitcoin Climbs To New All-Time High

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Bitcoin’s rally to $125k extended an eight-day winning streak and came as spot ETF inflows surged alongside a weaker US dollar amid renewed concerns over a potential government shutdown.

The move surpassed Bitcoin’s previous mid-August peak, marking another milestone in the asset’s strongest run since early 2024. Price action turned volatile near 12:45 am ET, when BTC spiked to new highs before slipping a few thousand dollars.

Can Morgan Stanley’s endorsement further increase BTC demand?

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Key Takeaways

History shows institutional buy-in often precedes major market rallies.

Institutional adoption has long been the “holy grail” for crypto enthusiasts. When companies like MicroStrategy, Tesla, and now top-tier wealth managers add Bitcoin to their balance sheets or client portfolios, it acts as a powerful endorsement that can draw in billions of dollars in new investment.

 

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