Morgan Stanley’s Global Investment Committee has issued new guidance encouraging investors to dedicate a small but deliberate portion of their portfolios to Bitcoin.
The bank’s analysts now view the world’s largest crypto as a “scarce asset similar to digital gold,” recommending an allocation of 2% to 4% depending on risk appetite.
Given that Morgan Stanley’s GIC oversees strategy for about 16,000 financial advisors managing roughly $2 trillion in client wealth, even modest adoption could introduce tens of billions in new inflows to Bitcoin.
Consequently, the bank’s recommendation could translate to as much as $40 to $80 billion in potential fresh investment into BTC.
Exhibit 12: GIC Recommendations for Maximum Cryptocurrency Allocations in Multiasset Portfolios
| Description | Wealth Conservation | Income | Balanced Growth | Market Growth | Opportunistic Growth |
| Risk Profile | 1 | 2 | 3 | 4 | 5 |
| Maximum Initial Allocation to Cryptocurrency | 0% | 0% | 2% | 3% | 4% |
Morgan Stanley’s Bitcoin guidance
According to the guidance, investors with Opportunistic Growth portfolios (i.e., those comfortable with greater volatility) can hold up to 4% in Bitcoin or similar digital assets.
Meanwhile, those with Balanced Growth strategies are advised to keep exposure below 2%, while portfolios focused on preserving capital or generating income should avoid crypto entirely.
Still, GIC cautioned that Bitcoin could experience sharper swings during macroeconomic stress, though it acknowledged that the asset’s volatility has significantly reduced in recent years.
Nonetheless, this decision reflects a shift in tone from the firm’s earlier caution, when crypto exposure was limited to select high-net-worth
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Author: Oluwapelumi Adejumo
