Morgan Stanley Advises Allocating Up to 4% of Portfolios to Cryptocurrencies

Morgan Stanley suggests adding cryptocurrencies to portfolios, up to 4% for high-risk investments.

Analysts at Morgan Stanley have advised financial advisors and clients to incorporate cryptocurrencies into multi-asset portfolios. Recommendations from the GIC report were shared by Bitwise CEO Hunter Horsley.

This is huge.

New Special Report from Morgan Stanley GIC:

“we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multiasset portfolios.”

GIC guides 16,000 advisors managing $2 trillion in savings and wealth for… pic.twitter.com/RBWFxlRNkS

— Hunter Horsley (@HHorsley) October 5, 2025

Experts suggested allocating up to 4% for high-risk, high-return portfolios. For balanced investments, the share should not exceed 2%. Meanwhile, cryptocurrencies are not recommended for conservative strategies.

“In recent years, this asset class has shown high returns and reduced volatility. However, during periods of market stress, its price fluctuations and correlation with financial instruments may increase,” the report states.

Horsley described the report as “important.” He emphasized that the GIC advises 16,000 advisors managing $2 trillion in client assets.

“We are entering an era of mass adoption,” he wrote.

The Morgan Stanley report referred to Bitcoin as a “scarce asset, akin to digital gold.”

Between September 26 and October 4, investors poured a record $5.95 billion into cryptocurrency investment products.