Morgan Stanley Advises Up to 4% Crypto Allocation in Portfolios

- Report released as Bitcoin achieves new all-time high. - Recommends up to 4% crypto allocation in high-risk portfolios. On October 5, 2025, Morgan Stanley's Global Investment Committee released a report recommending conservative cryptocurrency allocations within specific multi-asset portfolios. The financial services giant proposed up to 4% for high-risk "Opportunistic Growth" portfolios and 2% for moderate-risk "Balanced Growth" portfolios. However, the firm advised no cryptocurrency allocation for portfolios focused on wealth preservation, ensuring these recommendations align with varying risk tolerance levels. The report marks a major milestone for the institutional adoption of digital assets, with Morgan Stanley emphasizing Bitcoin’s role as a "scarce asset akin to digital gold." According to Cointelegraph on October 5, the release coincided with Bitcoin surpassing $125,000 to achieve a new all-time high. Meanwhile, analysts attributed the price surge to renewed interest in decentralized assets amid a U.S. government shutdown. Industry leaders welcomed Morgan Stanley’s recommendations. Hunter Horsley, CEO of Bitwise, described the report as "huge" and a sign of mainstream acceptance of cryptocurrencies, emphasizing the growing movement of institutional capital into crypto and the recognition of its legitimacy as an asset class. This report follows earlier initiatives by Morgan Stanley to expand its cryptocurrency offerings, as the firm plans to introduce Bitcoin, Ether, and Solana trading on its E*Trade platform by 2026. According to CoinMarketCap, as of 23:08 UTC on October 5, Bitcoin (BTC) was trading at $123,443.75, with a 0.92% increase in 24-hour trading volume.