Morgan Stanley removes restrictions on wealth management clients holding crypto funds

According to CNBC reports on October 10th, Morgan Stanley informed its financial advisors on Friday that it is expanding cryptocurrency investment access to all clients and allowing such investments in any account type, including retirement accounts. Starting October 15th, financial advisors will be able to recommend cryptocurrency funds to any client. Previously, this option was limited to clients with a higher risk tolerance, at least $1.5 million in assets, who wished to invest in cryptocurrencies in their taxable brokerage accounts. Sources familiar with the matter said that with the removal of eligibility requirements for cryptocurrency funds, Morgan Stanley will rely on automated monitoring processes to ensure clients are not overly concentrated in this volatile asset class. The bank's global investment committee recently released a model recommending an initial allocation of up to 4% to cryptocurrencies based on various objectives, ranging from "wealth preservation" to "opportunistic growth." Sources familiar with the matter said that for now, financial advisors are limited to recommending Bitcoin funds from BlackRock and Fidelity, but Morgan Stanley is monitoring industry trends and considering adding other cryptocurrencies to these products. They added that clients can also request investment in any listed cryptocurrency exchange-traded product.