Morgan Stanley: Crypto ETFs are still in their early stages, and financial advisors are still evaluating allocations.

At the DC Blockchain Summit, Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, stated that market adoption of crypto ETFs is still in its very early stages, with financial advisors still evaluating how digital assets can be allocated within traditional portfolios. Oldenburg pointed out that the primary demand currently comes from self-directed investors, rather than accounts managed by financial advisors. She noted that approximately 80% of crypto ETF trading on the Morgan Stanley platform originates from self-directed accounts. Morgan Stanley has allowed clients to purchase Bitcoin ETFs through their brokerage accounts since 2024 and has been gradually expanding product accessibility. Oldenburg stated that this process has been conducted in a “gradual and prudent” manner, as the wealth management industry still needs time to understand this new asset class and explore its role in asset allocation models. With increasing institutional participation, some large financial institutions have begun setting initial crypto asset allocation ranges for their portfolios, typically between 1% and 4%.