At the recent Blockchain Summit in Washington, DC, Amy Oldenburg, head of Morgan Stanley’s Digital Asset Strategy unit, revealed that crypto ETF transactions conducted through the bank’s platform are dominated by individual traders rather than institutional players. Oldenburg highlighted that the integration of digital assets into traditional wealth management in the banking and finance sector remains in its infancy.
Retail Investors Take the Lead in Crypto ETFs
Morgan Stanley stands out among America’s major investment banks for its strong focus on portfolio management for wealthy clients and institutions. According to Oldenburg, around 80% of crypto ETF transactions on the firm’s platform are executed by self-directed individuals—investors making moves without relying on financial advisors. She explained that many financial advisors still lack a well-defined strategy for allocating digital assets, which, combined with a traditional asset management mindset, has slowed adoption within portfolios.
While spot market crypto products are attracting billions of dollars from investors overall, their widespread inclusion in advisor-managed portfolios continues to lag. Oldenburg pointed out that some brokerage firms are still working to make these products available on their platforms, indicating that large-scale industry integration is happening gradually rather than overnight.
Clear Guidance and Education Pushed for Advisors
To help accelerate adoption, Morgan Stanley is pushing for more concrete guidance on how advisors can incorporate cryptocurrencies into client portfolios. Oldenburg noted that for balanced growth strategies, the firm recommends allocating around 2% to digital assets, while more aggressive strategies could go up to 4%. Such specific recommendations provide a practical starting point for financial advisors, who might otherwise struggle to create a framework from scratch.
She also emphasized that uncertainty over digital asset literacy and portfolio construction among advisors remains a significant obstacle to broader implementation. According to Oldenburg, the main challenges stem less from client demand or regulatory barriers and more from a lack of knowledge and adequate tools needed for effective integration.
Morgan Stanley Expands Its Own Crypto Offerings
In 2024, Morgan Stanley ramped up its efforts on the institutional side. On January 6, the bank filed applications with the US Securities and Exchange Commission (SEC) for Bitcoin Trust and Solana Trust products. Just a day later, Morgan Stanley applied to launch an Ethereum Trust designed to enable investors to benefit directly from staking rewards.
The bank is also working to enable its 5.2 million E*Trade users to buy and sell crypto assets directly. This initiative aims to broaden access to digital assets beyond just institutions and ultra-high-net-worth individuals, targeting a wider spectrum of retail clients.
With its own crypto funds, staking opportunities, and expanded trading options for individual investors, Morgan Stanley is establishing one of the most comprehensive lines of crypto-related products among traditional financial institutions. Nevertheless, the pace of adaptation among advisors remains measured. As Oldenburg noted, the keys to unlocking broader adoption are education and robust infrastructure for advisors.
