Morgan Stanley has released new guidance on cryptocurrency exposure within diversified portfolios, urging investors to take a cautious stance.
In its October Global Investment Committee (GIC) report, the financial services giant advised a maximum 4% crypto allocation for portfolios categorized under Opportunistic Growth those targeting higher risk and higher returns.
For portfolios with a Balanced Growth strategy and moderate risk tolerance, the bank suggested limiting crypto exposure to 2%. Meanwhile, portfolios designed for wealth preservation and income generation were advised to maintain zero exposure to cryptocurrencies.
Bitcoin Hits Record High as Morgan Stanley Endorses Conservative Crypto Allocations
Hunter Horsley, CEO of investment firm Bitwise, described Morgan Stanley’s latest report as “huge” news, noting that the bank’s Global Investment Committee (GIC) “guides 16,000 advisors managing $2 trillion in savings and wealth. We’re entering the mainstream era.”
Morgan Stanley’s guidance signals the deepening institutional acceptance of cryptocurrencies, especially among major banks and asset managers. This growing confidence continues to drive capital inflows into the crypto market, reinforcing its legitimacy as a recognized asset class.
Bitcoin (BTC), which Morgan Stanley analysts describe as a “scarce asset, akin to digital gold,” remains a preferred choice for institutions as a treasury reserve and through exchange-traded funds (ETFs). The cryptocurrency reached a new all-time high of over $125,000 on Saturday, according to Glassnode, while exchange-held BTC balances dropped to a six-year low, a sign of long-term investor confidence.
The surge came amid a U.S. government shutdown and a broader rise in demand for safe-haven and risk-on assets, highlighting Bitcoin’s evolving role as both a hedge and a growth asset.
