Morgan Stanley’s Global Investment Committee (GIC) has issued a landmark recommendation, advising its vast network of 16,000 financial advisors to consider allocating between 2% and 4% of higher-risk investment portfolios to cryptocurrencies, with a primary focus on Bitcoin. This advice was detailed in a special report released on October 1, 2025, and directly addresses advisors managing over $2 trillion in client assets worldwide.
In the report, Morgan Stanley positions Bitcoin as a “digital gold,” highlighting its potential role as an inflation hedge and underscoring its superior historical returns when compared to traditional assets like gold. However, the committee emphasizes that this cryptocurrency allocation is suitable exclusively for high-risk tolerance portfolios. For clients with conservative, wealth-preservation goals, Morgan Stanley continues to recommend zero cryptocurrency exposure.
The investment bank’s recommendation reflects the rapidly changing landscape of digital assets, spurred by increased institutional adoption and regulatory support from the Trump administration and Congress. With the global cryptocurrency market capitalization now reaching $4 trillion and growing investment access through exchange-traded products, digital assets are swiftly becoming a mainstream component of asset allocation strategies.
Morgan Stanley’s move brings it in line with industry peers such as BlackRock, who have also recently advocated for measured crypto exposure in diversified portfolios. If widely implemented by the firm’s clients, this guidance could channel between $40 billion and $80 billion of fresh capital into the cryptocurrency market.
The GIC views cryptocurrency as a speculative asset class but recognizes its growing appeal. While the committee notes that its official allocation models will not include explicit cryptocurrency holdings, it underscores its commitment to supporting financial advisors and clients in making informed and flexible decisions to include digital assets in their multi-asset portfolios.
