Morgan Stanley exec says crypto ETF adoption still 'very early' as advisors weigh allocations

Crypto ETF adoption remains in its early stages as financial advisors continue to evaluate how digital assets fit into traditional portfolio models, according to a Morgan Stanley executive speaking Tuesday at the DC Blockchain Summit.

Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said most demand for spot crypto exchange-traded products still comes from self-directed investors rather than advisor-managed accounts.

"This has been a journey, and we’re still very early on it," Oldenburg said during a panel discussion.

Much of the current demand for spot crypto exchange-traded products still comes from self-directed investors rather than advisor-managed accounts.

"Even the distribution of these ETFs, about 80% of what we see on our platform, is coming through the self-directed business," Oldenburg said.

Morgan Stanley began allowing purchases of bitcoin ETFs in brokerage accounts in 2024 and has gradually expanded access since then. Oldenburg described the rollout as a "managed and stepped journey," as wealth managers work through education and portfolio construction questions about the new asset class.

"Self-directed is only a piece of the puzzle," Oldenburg said. "We really have to do more work to understand with financial advisors how that fits into asset allocation models going forward."

Morgan Stanley filed to list spot Bitcoin and Solana exchange-traded funds in January.

Advisors slowly formalizing crypto ETF allocations

The comments come as large financial institutions increasingly publish guidance for incorporating digital assets into diversified portfolios.

Morgan Stanley’s global investment committee suggested allocations of up to 4% in model portfolios last year, depending on risk tolerance. Bank of America has also backed a 1% to 4% crypto allocation range, while asset managers including BlackRock and Fidelity have floated similar guidance bands.

Bitwise Chief Investment Officer Matt Hougan recently noted that some professional investors are now considering allocations of around 5%, compared with earlier recommendations closer to 1%.

Those frameworks are emerging alongside rapid growth in crypto exchange-traded products. Since their launch in 2024, U.S. spot bitcoin and ether ETFs have attracted more than $68 billion in combined inflows, according to SoSoValue data.

Still, panelists said the industry is only beginning to see broader adoption across major advisory platforms.

Teddy Fusaro, president of crypto asset manager Bitwise, said many brokerage networks only started allowing advisors to place crypto ETFs in client portfolios relatively recently.

"It was really not until late 2025 that major advisory and brokerage platforms began making these products available for financial advisors to put into client accounts," Fusaro said. "It really was a watershed moment for the financial advisory community to understand that crypto exposures are now part of the toolkit," he added.

Panelists also suggested the next phase of development could extend beyond traditional ETFs to include tokenized financial assets and blockchain-based settlement systems that operate continuously rather than within fixed market hours.