Morgan Stanley’s (Nasdaq: MS) The Global Investment Committee (GIC) has presented digital assets in its latest report on specialty assets management and recommends that portfolio managers take a “conservative” strategy for the asset class and support allocations of up to 4%.
The report is the latest in a series issued by GIC on AD-HOC basis, which usually deals with particularly current topics and themes. In this case, it focuses on “asset allocation considerations for Cryptocurrencies.”
“Cryptocurrency has attracted significant attention in recent years, given its major return, increased volatility, growth to $ 4 trillion in market value and increased support from the Trump administration and congress.”
The report continues to provide a table of GIC’s recommendations on which percentage of portfolios with several assets to be allocated ‘Cryptocurrency.’ It provides recommended allocations based on five risk profiles. For “pure wealth retention” and/or “income” it recommends a distribution of zero; “Balanced growth” is recommended to 2%; “Market growth” is recommended to 3%and “opportunistic growth” is recommended to 4%.
Morgan Stanley who issues such clear guidance is undoubtedly a sign of growing role that digital assets play in mainstream portfolios.
However, the report should not be taken as an unreserved approval of the asset class. The recommended levels are also somewhat modest and make a clear reservation that the asset is not suitable for all portfolios:
“The Global Investment Committee (GIC) considers Cryptocurrency as a speculative and increasingly popular asset class as many investors, but not all, will try to explore.”
Although the report presents as an assessment of digital assets in general, it is careful Digital gold. ”
It also indicates that portfolio managers are still best to get exposure to BTC via exchange -traded products (ETP), such as the list of dedicated “crypto” funds that have emerged in recent years.
It further warns that “While the new asset class has experienced oversized total return and decreasing volatility In recent years, Cryptocurrency may experience more increased volatility and higher correlations with other asset classes in periods with macro and market stress. “
Nevertheless, it is impossible to ignore the overall lean against digital assets from Morgan Stanley, especially in 2025.
Gic Published A founder of “Investing in Cryptocurrency” in August and discusses history of the asset class, reasons for its success and potential risks. Although far from an approval or recommendation, the primer discussed the valuable aspects of digital assets, especially BTC, such as being reliable, allowed and scarce. At the same time, it identified three important risks such as encryption owls, risks that consist of software fairs and the government’s intervention.
Since September it was revealed That Morgan Stanley was about to offer BTC trading through its e-commerce platform. The service is said to be planned in early 2026.
Watch: Richard Baker on Engineering a smarter financial world with blockchain
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