Bitcoin Goes Mainstream: Morgan Stanley Tells Advisors to Buy In

Morgan Stanley has made a landmark move in the crypto space that could significantly reshape mainstream investment strategies.

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.”

Here's the essence of their "huge" Bitcoin call:

Allocation Guidance

• Global Investment Committee (GIC) recommends a 2%–4% allocation to Bitcoin across client portfolios:
  • 2% for balanced growth
  • 3–4% for opportunistic or market-driven returns
• This guidance reaches 16,000 financial advisors managing $2 trillion in client assets.

Why It Matters

• Morgan Stanley views Bitcoin as “digital gold”—a scarce, long-term asset with diversification benefits.
• Institutional ownership of Bitcoin ETFs has climbed to 25% in H2 2025, up from 21.9% in Q1.
• Morgan Stanley holds $187 million in BlackRock’s iShares Bitcoin Trust (IBIT), ranking among the top five holders.

Potential Impact

• Bitwise CEO Hunter Horsley called the update “huge,” noting it could open the floodgates to $2 trillion in potential crypto exposure.
• Partnership with ZeroHash aims to bring crypto access to retail clients via E-Trade by 2026.
• ETF inflows have helped push Bitcoin to a new ATH of $125K, with further advisor-driven demand expected to amplify the rally.

Bitwise CEO Hunter Horsley called it “huge” and posted on X, saying - “GIC guides 16,000 advisors managing $2 trillion in savings and wealth for clients. We’re entering the mainstream era.”

Mr. Raj Karkara, COO, ZebPay, said “Bitcoin’s record-breaking surge past $125,000 marks a defining moment for the digital asset ecosystem, driven by sustained institutional inflows into spot ETFs, declining exchange reserves, and a pronounced macro shift toward the ‘debasement hedge’ narrative. This rally isn’t fueled by short-term momentum alone; it reflects a structural tightening of supply amid robust on-chain activity and renewed investor conviction. As liquidity migrates towards regulated venues and Bitcoin cements its place among the world’s most valuable assets, we’re witnessing a pivotal evolution in market maturity and capital efficiency within the crypto economy. These developments highlight not only Bitcoin’s resilience as a store of value but also the growing sophistication of participants navigating this dynamic landscape.”