Morgan Stanley’s Global Investment Committee has issued new guidance encouraging investors to dedicate a small but intentional portion of their portfolio to Bitcoin.
Bank analysts now consider the world’s largest crypto as a “rare asset similar to digital gold,” recommending an allocation of 2% to 4% depending on risk appetite.
Given that Morgan Stanley’s GIC oversees the strategy of around 16,000 financial advisors managing the wealth of their clients of around $2 trillion, even modest recruitment could bring a new influx of tens of millions of people to Bitcoin.
As a result, bank recommendations could be converted to up to $4-80 billion with potential investments in new investments in BTC.
Figure 12: GIC recommendations for maximum cryptocurrency allocation in multi-asset portfolio
| explanation | Preserving wealth | income | Balanced growth | Market growth | Opportunistic growth |
| Risk Profile | 1 | 2 | 3 | 4 | 5 |
| Maximum initial allocation to cryptocurrency | 0% | 0% | 2% | 3% | 4% |
Morgan Stanley’s Bitcoin Guidance
According to the guidance, investors with an opportunistic growth portfolio (i.e., comfort for higher volatility) can hold up to 4% on Bitcoin or similar digital assets.
On the other hand, people with a balanced growth strategy would recommend keeping their exposure below 2%, but the portfolio should focus on capital conservation and income generation.
Still, GIC warned that Bitcoin can experience sharp swings during macroeconomic stress, but acknowledges that asset volatility has declined significantly in recent years.
Nevertheless, this decision reflects a change in tone from the company’s previous attention when crypto exposure was restricted to selected high-net clients.
Under that framework, qualified investors with a net worth of at least $1.5 million and high risk tolerance were allowed to invest in Bitcoin.
Institutional adoption grows
Morgan Stanley’s recommendations fully demonstrate a broader reassessment of digital assets within the traditional financial ecosystem.
The bank’s views are currently in line with those of BlackRock. This argued that allocating up to 2% of a diverse portfolio to Bitcoin is a “rational” approach for long-term investors.
Similarly, billionaire investor Ray Dalio argues that a small Bitcoin position can function as an inflation hedge comparable to gold, with its finite supply.
Industry observers view these changes as cultural turning points that will lead to further adoption and growth of emerging asset classes.
Samuel Grissanzio, Wolf Financial’s Chief Marketing Officer, said:
“The transition from ‘Stay Away’ to ‘flexibly allocated’ traditional asset management languages is a huge thing for adoption to be honest. ”
This evolution follows growing client demand since the US Securities and Exchange Commission approved Spot Bitcoin ETF in 2024.
These products have facilitated access to assets, helped drive prices above $125,000, and strengthened the role of Bitcoin as a legal element of modern wealth strategies and a bridge between traditional finance and the digital economy.