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Morgan Stanley Wealth Administration’s International Funding Committee (GIC) has suggested shoppers managing $2 trillion to allocate as much as 4% of shopper portfolios to Bitcoin, and likened the main crypto to “digital gold.”
”That is large,” stated Bitwise Chief Govt Officer (CEO) Hunter Horsley in a put up on X. ”GIC guides 16,00 advisers managing $2 trillion in financial savings and wealth for shoppers. We’re getting into the mainstream period.”
That is large.
New Particular Report from Morgan Stanley GIC:
“we goal to assist our Monetary Advisors and shoppers, who might flexibly allocate to cryptocurrency as a part of their multiasset portfolios.”
GIC guides 16,000 advisors managing $2 trillion in financial savings and wealth for… pic.twitter.com/RBWFxlRNkS
— Hunter Horsley (@HHorsley) October 5, 2025
In an October report launched final week, the agency’s GIC really helpful that advisors allocate between 2% to 4% of shopper portfolios to BTC, relying on danger urge for food.
It referred to as Bitcoin ”a speculative and more and more widespread asset class” however positioned it within the class of “actual belongings.” It additionally likened Bitcoin to digital gold.
Morgan Stanley Recommends 2% Allocation For Extra Conservative Portfolios
Morgan Stanley really helpful that advisors allocate as much as 4% of “Opportunistic Progress” portfolios to Bitcoin. Such portfolios are structured for buyers with the next danger tolerance in search of larger returns.
For extra conservative portfolios, it really helpful that advisors allocate as much as 2%. For portfolios optimized to for wealth preservation and revenue, it really helpful a 0% allocation to BTC.
Morgan Stanley stated portfolio managers who add crypto to their portfolios ought to rebalance them “on a daily, periodic foundation,” ideally quarterly.
“Such rebalancing will dampen the potential for swelling positions, which may imply outsized portfolio-level volatility and cryptocurrency danger contributions in durations of macro and market stress.”
Whereas Bitcoin’s 30-day trailing volatility has fallen over the previous few years, Morgan Stanley stated it ”may expertise extra elevated volatility and better correlations with different asset lessons in durations of macro and market stress.”
Bitcoin 30-day trailing volatility (Supply: VanEck)
The GIC advice comes as Bitcoin soared to a brand new all-time excessive (ATH) of $125,559.21 over the weekend. It has since retraced to commerce at $123,549.71 as of 1:32 a.m. EST after falling 1% prior to now 24 hours, in accordance with CoinMarketCap information.
Even with the latest correction, the crypto market chief is up over 11% over the previous month. Fueling that rally is a surge in inflows into spot Bitcoin ETFs and a drop within the quantity of BTC on exchanges to a six-year low.
Bitcoin ETFs Have Made It Simpler To Purchase BTC, Morgan Stanley Says
Morgan Stanley additionally famous “product innovation” within the crypto and monetary sectors. This contains the launch of spot Bitcoin ETFs (exchange-traded funds) within the US in January final yr, which the agency says opened up “the potential of allocating to the rising asset class in a multiasset portfolio.”
Simply final week, US spot BTC ETFs pulled in over $3 billion, information from Farside Buyers reveals.
US spot BTC ETF flows (Supply: Farside Buyers)
The most effective day final week was on Friday, when buyers pumped $985.1 million into the merchandise.
The most well-liked of those merchandise has been BlackRock’s iShares Bitcoin ETF, which trades beneath the ticker image “IBIT.” A lot of the inflows seen final week have been into IBIT, which now holds over 3% of BTC’s provide and has recorded $62.635 billion in cumulative inflows since launch.
Good chart from @JSeyff of the breakdown of choices open curiosity by issuer, IBIT utter domination. Choices tends to be extra winner take all vs ETF aum which is extra unfold round pic.twitter.com/kVBoMMAUix
— Eric Balchunas (@EricBalchunas) October 2, 2025
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