Wall Street Pivots: Morgan Stanley Officially Recommends Exposure To Crypto, Especially Bitcoin

Core Insights - Morgan Stanley has advised clients to allocate 2-4% of their investment portfolios to cryptocurrency, marking a significant shift in Wall Street's approach to digital assets [1][2][3] Group 1: Portfolio Allocation Guidelines - On October 5, 2025, Morgan Stanley's Global Investment Committee (GIC) released guidelines suggesting up to 4% crypto allocation for opportunistic growth portfolios [2] - For balanced growth, a 2% crypto allocation is recommended, while 0% exposure is advised for wealth preservation and income portfolios [4] Group 2: Market Reaction and Commentary - Bitwise CEO Hunter Horsley described Morgan Stanley's pivot as significant, indicating that crypto is entering its mainstream era [3] - The crypto community has mixed reactions to the 2-4% guidance, with some viewing it as too late and too little [4] Group 3: Bitcoin Price Movement - Bitcoin reached a new all-time high of approximately $125,700 before retreating to the low $123,000 range [2][6] - The recent price surge is attributed to increased spot ETF inflows and a weaker US dollar amid concerns over a potential government shutdown [6][7] Group 4: Trading Initiatives - In September 2025, Morgan Stanley announced plans to offer crypto trading on the E*Trade platform through a partnership with Zerohash, allowing clients to trade Bitcoin, Ether, and Solana [5]