Morgan Stanley drops crypto fund restrictions for wealth clients

Morgan Stanley He told financial advisors on Friday that the firm was expanding access to crypto investments to all its clients, allowing such investments in all types of accounts, including retirement accounts, CNBC has learned.

Starting October 15, advisors will be able to offer crypto funds to any client. Previously, this option was limited to those with aggressive risk tolerance and at least $1.5 million in assets who wanted cryptocurrency in a taxable brokerage account.

The move marks the latest expansion of access to crypto at the world’s largest asset management firm, after the U.S. government’s stance on the nascent asset class reversed with the election of President Donald Trump. Last month, Morgan Stanley announced that it would soon enable trading in bitcoin, ether and solana at its E-Trade subsidiary.

Over the past two decades, Morgan Stanley has become an industry juggernaut. $8.2 trillion on client assets in wealth and investment management operations. In recent years, the bank has repeatedly shown that it is willing to defend its position despite the rise of platforms including: coinbase And Robinhood.

As Morgan Stanley lifts eligibility requirements for crypto funds, it will rely on an automated monitoring process to ensure clients are not overly concentrated in the volatile asset class, said people familiar with the matter who declined to be identified speaking about internal politics.

The bank’s global investment committee recently published a model recommending a maximum initial allocation of up to 4% to crypto, depending on goals ranging from “wealth preservation” to “opportunistic growth.”

Lisa Shalett, the firm’s chief investment officer of asset management, said in her Oct. 1 report that the committee “views cryptocurrency as a speculative and increasingly popular asset class that many, if not all, investors will seek to explore.”

As of now, advisors are still limited to pitching Bitcoin funds. Black Rock and Fidelity, but Morgan Stanley is monitoring the industry for possible additions to those offerings, including other types of crypto, according to people familiar.

They added that customers can seek placement on any listed crypto exchange-traded product.