2%–4% In Crypto? Morgan Stanley Thinks That’s The Smart Move Now

Christian Encila

Last Updated: October 6, 2025 10:27 am

3 mins read

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According to Morgan Stanley’s wealth unit, some clients should hold only a small slice of cryptocurrencies in their portfolios. The firm’s guidance suggests a cautious approach: up to 2% for more measured portfolios and up to 4% for those seeking higher growth.

For accounts built around income or capital preservation, the guidance points to 0% crypto exposure.

Small Stakes, Careful Rules

The bank tells its advisors that crypto belongs in the “speculative” part of a plan. Based on reports, the recommended exposure is meant to be modest and controlled.

Morgan Stanley prefers clients access crypto through exchange-traded products rather than buying every coin directly. That keeps custody and reporting simpler, the guidance says. It also means brokers can use ETFs and ETPs to give clients exposure without requiring them to manage wallets.

This is huge.

New Special Report from Morgan Stanley GIC:

“we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multiasset portfolios.”

GIC guides 16,000 advisors managing $2 trillion in savings and wealth for… pic.twitter.com/RBWFxlRNkS

— Hunter Horsley (@HHorsley) October 5, 2025

How To Manage The Exposure

Rebalancing is part of the advice. Reports show the firm recommends checking and trimming positions on a set schedule so that a crypto stake does not balloon during a rally.

Advisors are told to match allocations to client goals, not to follow price moves. The guidance is clear: this is not for people who need steady income. It is for clients who can tolerate wide swings and who understand the risk of losing their full investment.

NEW: MORGAN STANLEY IS MONTHS AWAY FROM OFFERING CRYPTO TRADING THROUGH E-TRADE, CALLS IT ‘TIP OF THE ICEBERG’ – PER CNBC pic.twitter.com/YIE8Qte7R8

— DEGEN NEWS (@DegenerateNews) September 23, 2025

A Move Toward More Access

Morgan Stanley is also working on ways to make crypto easier to trade for some of its clients. Based on reports, the firm has a deal to let E*Trade customers trade cryptocurrencies via a partner platform.

Initial support is expected for Bitcoin, Ethereum and Solana. That shift would expand access while keeping many of the operational and custody functions with a regulated provider.

Bitcoin is now trading at $123,861. Chart: TradingView

Market Reaction And Industry Context

Analysts and advisors reacted as expected. Some welcomed the clarity and the firm’s limits. Others said the guidance still leaves open big questions about regulation and long-term risk.

The move reflects a wider trend among big wealth managers that are opening controlled doors to digital assets while still warning clients about volatility and legal uncertainty.

Large wealth firms set norms for many investors. When a major bank offers concrete percentages, it can shape what advisors recommend across the market.

Based on Morgan Stanley’s view, crypto will likely remain a niche allocation for the foreseeable future. The firm’s language stresses caution and individual fit.

Investors who want exposure will find managed options and clearer paths to trade. But the bottom line is unchanged: only those who can accept big swings should consider putting money into these assets.

Featured image from Unsplash, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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