Key Takeaways
Why is Morgan Stanley expanding its exposure to BTC?
It views Bitcoin as “digital gold” with strong long-term growth potential and diversification benefits.
What is the likely impact of the update?
Per Bitwise CEO, it’s a “huge” development that could drive crypto mainstream.
Morgan Stanley has doubled down on Bitcoin [BTC] to diversify its clients’ wealth growth.
In its latest guidance, the firm’s Global Investment Committee (GIC) recommended that financial advisors and clients maintain a 2%–4% Bitcoin allocation. According to the analysts, BTC is like digital gold, calling it “scarce.”
The firm added that the BTC holdings, via ETFs, could be rebalanced quarterly or yearly to handle volatility.
Reacting to the update, Bitwise CEO Hunter Horsley called it “huge” and added,
“GIC guides 16,000 advisors managing $2 trillion in savings and wealth for clients. We’re entering the mainstream era.”
For his part, Chris Burniske, VC partner at Placeholder and former Ark Invest crypto lead, cautioned that Morgan Stanley must be ready for BTC wild swings.
“MS will now advise normies add a 2-4% crypto allocation, hope they’re strapped in bc this roller coaster goes both ways.”
Institutional growth in BTC ETFs
In Q3 2024, Morgan Stanley first
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Author: Benjamin Njiri
