Morgan Stanley’s Global Investment Committee (GIC) has recommended to clients that they allocate between 2 and 4 percent of their portfolios towards bitcoin and cryptocurrency.
This new report was released on 1 October and outlines the crypto allocations (primarily Bitcoin) based on risk profiles of investors. Report: Opportunistic Growth Portfolios that target high-risk strategies with higher returns should contain up to 4 percent of crypto. Balanced Growth portfolios have a cap at 2 percent.
According to the committee that wrote this report, bitcoin is a rare asset similar to digital gold. This suggests it has a place in diversified investments strategies.
“We place the emerging asset class within real assets and focus our commentary here primarily on bitcoin, which we consider a scarce asset, akin to digital gold,” Report read.
The following are some of the ways to get in touch with us Morgan Stanley It acknowledged that the crypto asset class has a history of volatility, and its potential to have a high correlation during times of stress with other markets. However, they also pointed out that in recent years it’s structural maturity and total returns had improved.
Morgan Stanley: Buy crypto ‘every quarter’
Morgan Stanley said that clients should regularly rebalance their multi-asset portfolios to include crypto — ideally every quarter, or at least once a year.
“Such rebalancing will dampen the potential for swelling positions, which could mean outsized portfolio-level volatility and cryptocurrency risk contributions in periods of macro and market stress,” This report is a good read.
Report recommended gaining exposure Exchange-traded product management is a way to reduce volatility, and protect portfolios from distortion during uptrends. It is clear that the approach takes a moderate but flexible stance towards integrating cryptocurrency within existing investment frameworks.
Bitcoin reached a new high at the same time as this announcement. new all-time high Around $126.200 is what we have today. It was the ninth day of a rally that had been fueled by ETF spot inflows as well as a weaker dollar, amid new government shutdown fears.
Morgan Stanley releases its latest guidance following the September decision to expand digital asset access through its E*Trade platform, enabling trading in bitcoin and other crypto via a Zerohash partnership.
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Source: bitcoinmagazine.com

