Allocation Recommendations Moves Crypto To The Mainstream

For a while, Bitcoin and other cryptos were entirely driven by the activity of retail investors and a handful of trailblazing billionaires. Then, a growing regulatory framework led to the creation of the first Bitcoin futures, ETFs, and similar derivatives for other cryptocurrencies.

A new step is being made with the launch of MSBT, Morgan Stanley’s own Bitcoin ETF (MS ), the first bank-issued Bitcoin ETF. The bank is also planning to launch crypto ETFs for Solana and Ethereum.

Previously, all Bitcoin ETFs were launched by asset managers like BlackRock’s (BLK ) IBIT. The entry of a major bank into this field is a major shift, as a bank like Morgan Stanley also likely brings its 16,000 financial advisors into becoming a lot more friendly to the idea of allocating assets into cryptos.

Such financial advisors not only have a serious influence on clients who have often worked with them for decades, but are also usually involved with much larger accounts, dealing with high-net-worth individuals, family offices, corporate investment accounts, etc.

Just 1% of Morgan Stanley’s assets under management moving into MSBT would be $80B, bigger than IBIT today. And 2% would be $160B, 3x IBIT, and 1.5x as large as all current Bitcoin ETFs combined.

So it is worth looking deeper at the major asset managers’ and banks’ recommendations regarding allocation to crypto to better understand the potential inflow that the mainstream adoption of Bitcoin ETFs and other crypto ETFs by mainstream finance could have.

Crypto Allocations Recommendations

Morgan Stanley Crypto Recommendations

Ahead of MSBT launch, Morgan Stanley recommends a 0–4% bitcoin allocation.

More precisely, it recommends:

• Up to 4% in “aggressive, “opportunistic growth” portfolios, which generally seek higher returns from short-term market opportunities”.
• 3% allocation is recommended for “market growth portfolios, which often appeal to investors with a moderate-to-aggressive risk tolerance”.
• 2% for “balanced growth portfolios, which seek a mix of capital appreciation and income”.
• 0% for “more conservative investors focused on income or wealth preservation“.

The same report also warns that any sizeable crypto allocations can increase volatility greatly.

“Adding just a 6% position in crypto to a growth-oriented portfolio nearly doubled overall volatility in our simulations.”

It seems like a somewhat polite way to recognize it as an asset, but also far from a solid endorsement to all its clients, keeping the image of crypto presented here as a high-risk, high-volatility asset mostly fit for aggressive portfolios, and then only up to the 4% mark.

Will the minimum recommended move away from the 0% mark and become a firmer endorsement of crypto once MSBT is making its way into Morgan Stanley’s advisors’ list? Maybe, or maybe not, as the more conservative among Morgan Stanley clients might still be hostile to being pushed into cryptos, and the bank will be cautious to preserve its reputation as a conservative, safe institution.

So it is possible that maybe the official recommendation will stay, but private discussions will encourage discreetly larger allocations to customers willing to listen.

BlackRock Crypto Recommendations

As THE major asset manager that has embraced Bitcoin early, and manager of the largest Bitcoin ETF (IBIT ), BlackRock has been more supportive of cryptos than many other financial institutions.

In its 2024 “Sizing bitcoin in portfolios”, BlackRock was already supporting a 1-2% allocations, saying Bitcoin is maturing as a large-scale digital asset.

“We use a risk budgeting approach: sizing the allocation based on how much it would contribute to total portfolio risk – measured by its long-run volatility and correlation to other assets. A 1–2% allocation contributes to overall portfolio risk at levels comparable to a single “Magnificent 7” stock in a 60/40 portfolio.”

It is, however, recommended to keep Bitcoin exposure at a 2% cap, pointing out that anything higher increases overall risk.

“Allocations beyond 2% elevate portfolio risk disproportionately, given bitcoin’s volatility and unstable correlations.”

Notably, it points out that a 4% allocations would make crypto a much larger share of portfolio risk than investors would get from a “normal” allocation to “Magnificent 7” stocks.

Source: BlackRock

Schwab Crypto Recommendations

In its latest April 7^th, 2026 publication, Schwab describes 2025 as “the big shift” in perception of cryptos, making digital assets part of a long-term plan more than speculation.

“As people understood the use cases and what problems it’s solving, that shifted toward a long-term view. People are now viewing and owning digital assets through the lens of portfolio diversification. The people who truly understand the utility of crypto don’t think of it as a trading vehicle—they think of it as a new asset class.”

Joe Vietri – Schwab’s head of digital assets.

The company recommends two possible approaches for adding cryptocurrencies to a portfolio.

The first approach is a traditional approach that depends on expected returns. This approach would suggest a 1% crypto weight in the whole portfolio for a conservative approach that is also assuming that Bitcoin would generate an annual return of 15%.

This creates a relatively refined recommendation table depending on both the expected rate of return of cryptos and the risk an investor is willing to take with their portfolio.

The results range from recommended allocation from 0% for the most conservative portfolio to as high as 22.4% Bitcoin or 107% Ether in the case of an expected annual return assumption of 25% and an aggressive approach.

Source: Schwab

The second approach is to consider the desired risk contribution from cryptos, so this method instead focuses on the investor’s level of comfort with risk.

“Because of bitcoin and ether’s historically very high volatility, based on our research even a small allocation represents a large percentage of portfolio risk. For example, in the conservative portfolio it takes only a 1.2% allocation to bitcoin and a 0.9% allocation to ether to reach the 10% risk level. ”

This approach is more likely to give a recommendation closer to other asset manager recommendations.

“Given bitcoin and ether’s historical volatility, the suggested allocations are relatively small. At these levels, the primary drivers of total portfolio risk are still traditional equity and fixed income investments, but the addition of bitcoin or ether provides the possibility of enhanced portfolio performance (or loss).”

Sacwab is still more aggressive in its recommendations than the average of the industry, with the maximum threshold recommendation for high-risk contribution from cryptos in an aggressive portfolio going as high as 5.6%, and never getting in any case lower than 0.5%

Source: Schwab

Fidelity Crypto Recommendations

Fidelity looks at cryptos from the angle of an alternative investment, a class of assets less correlated to the bonds and stocks of a traditional 60/40 portfolio.

“Our analysis suggests portfolio allocations of 2%–5% (7.5% for young investors) could have an outsized positive impact in an optimistic adoption scenario, allowing annual retirement spending to increase 1%–4%, while limiting the loss to annual retirement income to less than 1% if bitcoin were to lose all its value.”

A key factor in determining the crypto allocation for Fidelity is the age of the user, with the younger investors encouraged to consider a higher maximum potential allocation, going as high as 7.5%. However, this is also tied to a conservative value of a complete 0% allocation for a more conservative portfolio.

Source: Fidelity

The company looks at the associated risks and potential gains that different scales of allocation to Bitcoin can deliver to a retirement portfolio, and how this fluctuates depending on the age of the investor.

Notably, it analyzed the theoretical impact of a 2% and 5% allocation to Bitcoin.

Source: Fidelity

Source: Fidelity

Overall, Fidelity’s recommendation is that Bitcoin is to an extent a “young person” game, for whom extreme volatility and higher risks are more acceptable and less likely to impact the overall retirement income, as more time exists to smooth out temporary turbulence.

Still, contrary to some, it does not discourage older customers from investing in Bitcoin, but takes precaution to make clear that only a retirement fund large enough or aggressive enough to deal with the associated risks should consider a large allocation to Bitcoin.

Goldman Sachs Crypto Recommendations

Contrary to many of its competitors, Goldman Sachs is still mostly considering Bitcoin as “a high-risk/high-reward “satellite” or “speculative holding”, and even more so for other cryptos.

Goldman Sachs own allocation in Bitcoin, through ETFs, is as much as $2.3B, a large absolute number that still can also be considered low, as this is just a 0.3% exposure.

Instead of direct exposure to cryptos, Goldman is pushing for allocation investment tied to the crypto ecosystem, like stocks of crypto exchanges, for example, which it called a “selectively constructive stance on brokers and crypto for 2026”.

In March 2026, Goldman said it considers the crypto market “close to the bottom”, having “approximately reached the historical peak to trough average”, even if trading volumes may fall further.

“We expect the meeting of traditional retail brokerage and crypto trading to continue in 2026, driving increasing competition, potentially impacting market share and product pricing,”

James Yaro – Managing Director in Equity Research at Goldman Sachs

So overall, Goldman Sachs is not recommending allocation to crypto at all, at least not directly. But it sees the change in regulatory environment as potentially positive for crypto-related stocks and companies.

Bank Of America Crypto Recommendations

Along with Morgan Stanley’s steps to higher recommendation, Bank of America is also changing its stance on cryptos.

It allowed its 15,000 advisers to consider bitcoin ETF allocations for its wealth management clients for the first time in December 2025. The change will apply to Merrill Lynch, Bank of America Private Bank, and Merrill Edge platforms.

And the considered allocation is relatively significant, ranging from 1% to 4%, depending on their risk tolerance.

The warming stance on cryptos is, however, still coming with plenty of warnings:

“Crypto asset prices can decline rapidly, and investors can lose their entire investment within a short period. Some crypto assets have concentrated ownership or a number of large holders, who may cause unexpected price declines by selling or transferring their holdings without warning.”

Still, with $4.6T of assets under management, this change in stance from Bank of America is a major shift. And maybe the company, like other major banks, will consider its own Bitcoin ETF soon if Morgan Stanley’s launch is successful, instead of channeling this investment activity to ETFs created and managed by its competitors.

Citigroup Crypto Recommendations

Citigroup is not giving out a direct recommendation regarding cryptos, letting different analysts express different opinions.

But the bank’s publications mention a a 4% allocation to Bitcoin as a “max optimality” point to return enhancement with portfolio stability.

This would make the company rather positive on allocating money toward crypto, but it lacks a clear unified message on the question.

The company is also looking to launch in 2026 a crypto-custody solution for institutional clients, marking a serious entry of the company in the segment. This is directly tied to a clearer regulatory framework, reassuring the bank that it can move in safely without incurring reputational or legal risks.

“The ascendency of StableCoins is expected to continue in 2026, sparked by the recent regulatory changes in the US, most notably the passage of the GENIUS Act, President Trump’s Executive Order promising to make the US the crypto capital of the world,⁴ and the regulatory clarity on crypto-custody.”

Marcello Topa – Head of Global Advocacy for Investor Services at Citi

Wells Fargo Crypto Recommendations

In a segment of the bank publication in 2024 titled “Why we believe it is early, but not too early“, it argued that looking at the growth of Bitcoin and other digital assets in absolute percentage point form from inception is misleading.

“Digital assets are still a young investment space, and percentage price gains are skewed because most digital assets evolved from virtually zero. The vast majority are less than seven years old.2 Bitcoin only dates from 2009, and its first real-world transaction did not occur until May 2010, 16 months after its creation.”

It sees the adoption of crypto still at an early stage, especially when considering the previous classical “S curves” of adoption of other technologies.

In that perspective, a lot of Americans have still not yet tried cryptos, even less adopted it at the scale they will once the technology reaches maturity, arguing that “digital-asset adoption today looks similar to the 1990s internet’.

Source: Wells Fargo

Still, the bank does not offer in early 2026 direct cryptocurrency buying, selling, or custody services through its retail banking or brokerage platforms. So not only it seems to think it is still early, but it is also in no rush to move on with more crypto offers.

This mostly reflects the bank’s risk management approach and regulatory compliance framework within traditional banking structures, somewhat lagging behind compared to some of the largest US banks.

As a result, the bank also does not give any recommendations about allocation to crypto to its clients, here too reflecting the rather deep conservatism of its approach toward digital assets.

Overview Of Crypto Recommendations

Most banks and asset managers recommend a relatively light exposure to crypto, ranging from 0% to 4% for most of them, with only some rare cases of young investors and/or high-risk aggressive strategy recommending a higher percentage.

This is not as much compared to the exposure that many crypto enthusiasts are getting. But it is a sea of change compared to the previous stance of many of these institutions, almost universally negative toward cryptos tens of years ago, or even just five years ago for many of them.

As more and more traditional finance firms, collectively managing dozens of trillions of assets, start recommending crypto allocations, this could magnify the role of ETFs in the crypto ecosystem and drive a less explosive but slow and steady adoption curve from the broader public and institutional investors.