Morgan Stanley advises 2%-4% Bitcoin exposure amid rising demand for regulated crypto products.

Morgan Stanley recommends clients hold 2% to 4% Bitcoin exposure as demand grows for regulated crypto investment options. The bank's Bitcoin-backed exchange-traded product (MSBT) attracted over $100 million in early self-directed investments, highlighting strong client interest outside advisory channels. While Bitcoin on U.S. bank balance sheets remains a possibility, regulatory hurdles from the Federal Reserve and global rules slow adoption. Additionally, Morgan Stanley launched a Stablecoin Reserves Portfolio to support stablecoin issuers with regulated asset reserves.