Post
CoinPhoton
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Self-directed investors still dominate crypto ETF demand
Demand for crypto ETFs at major brokerages continues to be driven בעיקר by self-directed investors, while financial advisors are only gradually integrating these products into managed portfolios.
According to Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, around 80% of crypto ETF activity on the firm’s platform comes from self-directed accounts. She emphasized that institutional adoption remains in its early stages.
Morgan Stanley began allowing clients to purchase Bitcoin ETFs in 2024 and has since expanded access. However, incorporating crypto into traditional portfolios still requires time, particularly as advisors work through education and asset allocation frameworks.
Large financial institutions are increasingly formalizing small crypto allocations, typically in the 1%–4% range. Morgan Stanley’s global investment committee has suggested allocations of up to 4%, while Bank of America supports a similar range. Other major asset managers such as BlackRock and Fidelity have also proposed comparable guidelines.
Meanwhile, Matt Hougan of Bitwise noted that some professional investors are now considering allocations closer to 5%, up from earlier recommendations near 1%.
This trend coincides with rapid growth in crypto ETFs. Since launching in 2024, U.S. spot Bitcoin and Ethereum ETFs have attracted over $68 billion in inflows.
However, broader adoption across advisory platforms is still developing. Teddy Fusaro noted that many brokerages only began allowing advisors to allocate crypto ETFs to client portfolios in late 2025—marking a key turning point in recognizing crypto as a legitimate investment tool.
Looking ahead, the next phase of growth may extend beyond ETFs to include tokenized financial assets and blockchain-based settlement systems operating 24/7, rather than within traditional market hours.
Demand for crypto ETFs at major brokerages continues to be driven בעיקר by self-directed investors, while financial advisors are only gradually integrating these products into managed portfolios.
According to Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, around 80% of crypto ETF activity on the firm’s platform comes from self-directed accounts. She emphasized that institutional adoption remains in its early stages.
Morgan Stanley began allowing clients to purchase Bitcoin ETFs in 2024 and has since expanded access. However, incorporating crypto into traditional portfolios still requires time, particularly as advisors work through education and asset allocation frameworks.
Large financial institutions are increasingly formalizing small crypto allocations, typically in the 1%–4% range. Morgan Stanley’s global investment committee has suggested allocations of up to 4%, while Bank of America supports a similar range. Other major asset managers such as BlackRock and Fidelity have also proposed comparable guidelines.
Meanwhile, Matt Hougan of Bitwise noted that some professional investors are now considering allocations closer to 5%, up from earlier recommendations near 1%.
This trend coincides with rapid growth in crypto ETFs. Since launching in 2024, U.S. spot Bitcoin and Ethereum ETFs have attracted over $68 billion in inflows.
However, broader adoption across advisory platforms is still developing. Teddy Fusaro noted that many brokerages only began allowing advisors to allocate crypto ETFs to client portfolios in late 2025—marking a key turning point in recognizing crypto as a legitimate investment tool.
Looking ahead, the next phase of growth may extend beyond ETFs to include tokenized financial assets and blockchain-based settlement systems operating 24/7, rather than within traditional market hours.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.