About 80% of crypto ETF flows on Morgan Stanley’s platform come from self-directed accounts. The imbalance highlights limited penetration among financial advisors despite strong headline inflows into spot products.
Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said adoption remains in its early phase during remarks at the DC Blockchain Summit. The bank began offering spot Bitcoin exchange-traded funds (ETFs) in 2024 and has since expanded access, though advisor integration into client portfolios is still developing.
When Will Advisors Fully Allocate Crypto ETFs?
Since launch, U.S. spot Bitcoin and Ether ETFs have attracted more than $68 billion in inflows, according to SoSoValue. Yet institutional frameworks are still forming, with Morgan Stanley suggesting allocations of up to 4%, while peers such as Bank of America indicate a 1% to 4% range.
The gap between inflows and advisor adoption reflects structural friction. Many brokerage platforms only enabled advisors to allocate to crypto ETFs in client accounts in late 2025, delaying broader integration into model portfolios and wealth management strategies.
“This has been a journey, and we’re still very early on it,” Oldenburg said.
She added that firms must better understand how digital assets fit within traditional asset allocation models rather than treating them as standalone exposures.
Industry participants are already adjusting expectations. Bitwise Chief Investment Officer Matt Hougan noted some professional investors are now considering allocations closer to 5%, up from earlier guidance near 1%. The next phase will likely depend on advisor education, expanded product access, and the development of tokenized assets that extend beyond ETF wrappers.
