Morgan Stanley's Global Investment Committee (GIC) has recommended allocating up to 4% of investment portfolios to cryptocurrency assets, according to an October 1 research note. The banking giant suggests this maximum allocation for investors pursuing "opportunistic growth" strategies.
The committee outlined tiered recommendations based on different investment objectives: 2% for balanced growth seekers, 3% for market growth investors, and 0% for wealth conservation or income-focused portfolios.
Morgan Stanley's GIC characterized cryptocurrency as "a speculative and increasingly popular asset class" while noting their analysis primarily focuses on Bitcoin (BTC), which they describe as "akin to digital gold."
This recommendation places Morgan Stanley at the higher end among major financial institutions, with BlackRock and Fidelity typically recommending around 2% allocations, while Grayscale and VanEck have suggested 5% and 6% allocations respectively through their crypto ETF offerings.
The endorsement from established financial institutions like Morgan Stanley represents significant progress for cryptocurrency adoption, contrasting sharply with earlier industry skepticism when some banking executives dismissed digital assets as fraudulent.