Sygnum Bank’s Chief Investment Officer Fabian Dori claims that day-to-day tracking of Bitcoin ETF fund flows overlooks a deeper change in institutional investment strategies. He points to a fundamental development: major asset allocators such as pension funds, sovereign wealth funds, endowments, and insurance groups now see Bitcoin as a standard part of their portfolios rather than an experimental position.
Wall street integrates bitcoin into its core infrastructure
Dori has highlighted three key events driving this shift in market dynamics. JPMorgan recently forecasted that institutional inflows into Bitcoin ETFs could range from $15 billion in a conservative scenario to $40 billion in an optimistic one for 2026. These projections build on the significant $56.6 billion flow that spot Bitcoin ETFs attracted in 2025 alone.
In a further sign of mainstream acceptance, JPMorgan began issuing structured notes linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT). Dori describes this as a form of permanent financial “plumbing,” indicating that Bitcoin access is now embedded in Wall Street’s toolset.
Morgan Stanley Investment Management also launched its own spot Bitcoin ETF, MSBT, which saw approximately $34 million in trading volume on its first day. This debut marked it among the top 1% of all recent ETF launches, underlining rising institutional demand.
Sygnum is a Swiss-based digital asset bank serving institutional investors and individuals, known for its regulated approach to crypto banking and asset management. Its leadership and research regularly inform industry discussions on the integration of blockchain technology within mainstream finance.
Rebalancing and long-term allocation trends
Dori draws attention to the mechanics of portfolio management as a cause for misleading signals in daily ETF flow data. When Bitcoin prices increase, a fixed percentage allocation in a portfolio naturally grows, prompting institutions to rebalance by selling some holdings. These moves show up as outflows but are simply a part of routine investment discipline.
For instance, BlackRock’s IBIT ETF saw a record $2.7 billion outflow streak in December 2025. However, within four months and after a roughly 30% price drop for Bitcoin year-to-date, net inflows of $1.5 billion resumed, underscoring persistent demand regardless of short-term volatility.
The core argument from Dori is that the spot Bitcoin ETF did not generate new demand, but instead removed a previous barrier to institutional adoption.
“The spot Bitcoin ETF did not create demand. It removed an excuse,” emphasized Fabian Dori, Chief Investment Officer at Sygnum Bank.
Growing consensus among leading investment firms
The rising role of Bitcoin in investment portfolios has been corroborated by several major asset managers. Fidelity Digital Assets, in a research paper from March, argued that the investment debate is shifting from whether to include Bitcoin to justifying any decision to exclude it.
Morgan Stanley Investment Management published an analysis in April suggesting that portfolios would benefit from a moderate allocation to digital assets, combined with regular reviews and rebalancing. Meanwhile, 21Shares advocated for a 3% Bitcoin allocation, reasoning that disciplined rebalancing could help investors benefit from market fluctuations.
Looking ahead, Dori envisions a landscape where asking whether a large portfolio holds Bitcoin will be no more unusual than asking if it holds bonds. The key questions will soon pivot toward allocation sizing and purpose.
