Morgan Stanley is advising clients to hold 2%–4% Bitcoin exposure as demand for regulated crypto products grows.
Summary
- Morgan Stanley recommends 2%–4% Bitcoin exposure as clients seek regulated access through new investment products.
- MSBT attracted over $100 million before adviser access, showing strong self-directed demand for Bitcoin exposure.
- Oldenburg said bank-held Bitcoin remains possible, but Fed, Basel, and global rules still slow adoption.
The guidance was shared by Amy Oldenburg, the bank’s head of digital asset strategy, during the Bitcoin Conference in Las Vegas.
Oldenburg said the bank sees client interest in Bitcoin products, but adoption through financial advisers remains slow. She said the issue is tied to education and awareness, not only demand.
Oldenburg also said Bitcoin could one day appear on U.S. bank balance sheets. However, she made clear that such a move is not close.
She pointed to Federal Reserve guidance, Basel capital rules, and global regulatory demands as key hurdles. “It’s not totally out of the question,” Oldenburg said, while adding that large banks still need more alignment across regulators.
MSBT draws early self-directed demand
Morgan Stanley has already moved further into digital assets through MSBT, its Bitcoin-backed exchange-traded product. The product drew more than $100 million in its first six days of trading.
Oldenburg said those early inflows came from self-directed clients. The product was not yet available through Morgan Stanley’s advisory platform, which showed a gap between client activity and adviser adoption.
Stablecoin fund adds another digital asset product
Morgan Stanley Investment Management also launched the Stablecoin Reserves Portfolio, a government money market fund for stablecoin issuers. The fund trades under the ticker MSNXX and went live on April 23.
The fund invests in cash, short-term U.S. Treasury bills and notes, and overnight repurchase agreements backed by Treasuries. It targets a stable $1.00 net asset value and daily liquidity.
The product is designed for stablecoin issuers that need to hold reserves in regulated assets. Crypto.news reported that the fund has a $10 million minimum investment, a 0.15% management fee, and a 0.20% net expense ratio after waivers.
