Morgan Stanley, one of the world’s largest asset managers, has notified financial advisors that all clients can invest in crypto funds starting October 15, CNBC reports.
Advisors can now offer crypto assets to clients with individual retirement accounts (IRAs) and 401(k)s, a significant change from previous policies that restricted access to high-net-worth investors with assets over $1.5 million and aggressive risk profiles.
The move could free up millions of dollars currently locked up in other assets and pave the way for some of that capital to flow into cryptocurrencies. As of June 30, total retirement assets in the United States were about $45.8 trillion, with about $18 trillion held in IRAs and $9.3 trillion held in 401(k) plans, according to the Investment Company Institute’s latest quarterly update.
Morgan Stanley’s Wealth Management division employs approximately 16,000 financial advisors across its advisory network, oversees approximately $6.2 trillion in assets and services more than 19 million client relationships, according to the firm’s 2025 Annual Shareholder Letter.
To ensure clients are not over-exposed to cryptocurrencies, Morgan Stanley uses an automated system and for now advisors can only offer Bitcoin funds managed by BlackRock and Fidelity. The company is monitoring the market for other crypto products, CNBC reported, citing people familiar with the policy.
“Financial institutions are starting to look at digital assets not just as speculative investments, but as investable asset classes that require structured access points,” Sei Labs co-founder Jeff Feng told Cointelegraph when asked to comment on the policy.
“The distinction between traditional finance and on-chain finance continues to blur” as crypto-native platforms bring tokenized assets on-chain and asset managers open new channels for exposure. As a result, digital assets are “becoming a standard part of diversified portfolios,” Feng said.
In October, a report from Morgan Stanley’s Global Investment Committee recommended a cautious approach to cryptocurrencies, suggesting up to 4% exposure for high-risk “opportunistic growth” portfolios, 2% exposure for “balanced growth” portfolios, and zero exposure for income and conservation strategies.
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Virtual currency in asset management
Morgan Stanley’s shift comes as some of the world’s biggest asset managers deepen their involvement in digital assets.
In April, Fidelity launched a new retirement account suite that gives Americans access to crypto investments with near-zero fees. The service includes a traditional IRA and two Roth IRA options, allowing users to buy and sell Bitcoin.
Global banking and financial services giant JPMorgan announced in June that it would allow its trading and wealth management customers to use crypto exchange traded funds (ETFs) as collateral for loans, Bloomberg reported. The bank also said it will factor in customers’ crypto holdings in its overall net worth assessment.
Asset manager BlackRock is also considering expanding its crypto offerings after its Spot Bitcoin ETF became its most profitable fund, generating $245 million in fees over the past year.
On September 11, Bloomberg reported that BlackRock is exploring ways to tokenize ETFs on a blockchain network, which could allow them to be traded around the clock and serve as collateral within decentralized finance (DeFi) applications.
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