Morgan Stanley Recommends a Maximum of 4% Allocation in Cryptocurrency Portfolios

Morgan Stanley's Global Investment Committee (GIC) recommended a conservative approach to cryptocurrency allocations in client portfolios in its report dated October 1. The committee classifies cryptocurrencies as 'speculative and increasingly popular' tangible assets, akin to digital gold, and suggests allocations ranging from 0% to 4% depending on the risk profile.

Specifically, portfolios focused on wealth conservation (risk profile 1) and income (risk profile 2) are advised to have a 0% allocation to cryptocurrencies, while those aimed at balanced growth (risk profile 3...