Morgan Stanley broadens access to bitcoin and crypto funds Oct 15

Morgan Stanley will allow all wealth management clients to invest in bitcoin and other cryptocurrency funds beginning October 15, the bank told its financial advisers, marking a major expansion of access that includes retirement accounts and clients previously excluded under strict eligibility rules. The change ends a policy that had limited crypto fund access to clients with at least $1.5 million in investable assets, an aggressive risk tolerance and taxable brokerage accounts.

The firm said advisers across its $8.2 trillion wealth and investment management business will be able to recommend crypto exchange-traded products to any client, subject to suitability assessments. To limit concentrated exposure, Morgan Stanley will deploy automated monitoring to track client holdings and guard against excessive allocations. The bank’s Global Investment Committee has issued guidance recommending a maximum initial crypto allocation of up to 4 percent of a client’s portfolio, with the precise allocation varying by individual investment goals.

In a report dated October 1, Lisa Shalett, chief investment officer for Morgan Stanley Wealth Management, described cryptocurrency as “a speculative...