Morgan Stanley: Crypto ETF Adoption in Early Stages, 80% Demand from Self-Directed Investors

According to The Block, Amy Oldenburg, Head of Digital Assets Strategy at Morgan Stanley, stated on March 17 at the Washington Blockchain Summit that adoption of crypto ETFs is still in a very early stage, with approximately 80% of demand for crypto ETFs on the platform coming from self-directed investors rather than advisor-managed accounts. Oldenburg described Morgan Stanley’s progress in crypto products as a “methodical, step-by-step journey,” emphasizing that the wealth management team still needs to do significant work in education and portfolio construction to help financial advisors incorporate digital assets into their asset allocation models. Morgan Stanley opened access to brokerage accounts for purchasing Bitcoin ETFs in 2024 and applied in January to list spot Bitcoin and Solana ETFs. On the institutional allocation front, Morgan Stanley’s Global Investment Committee recommends a maximum allocation of 4% to crypto assets in model portfolios; Bank of America supports a similar range of 1% to 4%, and BlackRock and Fidelity have provided comparable guidance. Bitwise CIO Matt Hougan noted that some professional investors are now considering increasing allocations to around 5%.