Morgan Stanley advises clients to hold 2%–4% Bitcoin — and sees BTC on bank balance sheets eventually.

Morgan Stanley's head of digital asset strategy, Amy Oldenburg, told the Bitcoin Conference that the firm is actively advising clients to allocate between 2% and 4% of their portfolios to Bitcoin. The guidance marks a meaningful step for one of Wall Street's largest wealth managers, even as Oldenburg acknowledged that uptake among financial advisers is still slow — held back primarily by education and awareness gaps.

On the longer arc, Oldenburg said Bitcoin could eventually find its way onto U.S. bank balance sheets, but cautioned that the timeline will likely stretch beyond what markets are pricing in. Federal Reserve guidance, Basel capital rules, and multi-jurisdictional regulatory requirements all sit in the path.

The message is a measured but clear institutional endorsement: Bitcoin belongs in diversified portfolios, even if the full banking-system integration is still a…