Headline: Morgan Stanley Advocates Allocating Up to 4% of Portfolio to Cryptocurrencies Translation: Morgan Stanley Advocates Allocating Up to 4% of Portfolio to Cryptocurrencies

Analysts at Morgan Stanley have recommended that financial advisors and their clients incorporate cryptocurrencies into multi-asset portfolios. The insights from the report by the Global Investment Committee (GIC) were shared by Bitwise CEO Hunter Horsley.

Experts suggested allocating up to 4% for portfolios characterized by high risk and return. For balanced investments, the proportion should not exceed 2%. Conversely, the inclusion of cryptocurrencies in conservative strategies is not advisable.

«The past few years have shown that this asset class has delivered strong returns alongside reduced volatility. However, during periods of market stress, its price fluctuations and correlation with financial instruments may increase,» the report states.

Horsley described the report as “significant.” He emphasized that the GIC provides guidance to 16,000 advisors managing client assets worth $2 trillion.

«We are entering an era of widespread acceptance,» he wrote.

In the Morgan Stanley report, Bitcoin was referred to as a » scarce asset akin to digital gold.»

It is worth noting that from September 26 to October 4, investors poured a record $5.95 billion into cryptocurrency investment products.