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Morgan Stanley sends bold message on crypto asset allocation
Wall Street is still in the beginning stages of adopting cryptocurrency funds, according to a top executive at Morgan Stanley.
Speaking at the DC Blockchain Summit, Amy Oldenburg, the bank’s head of digital asset strategy, noted that while some feel crypto has been around for years, the professional side of the business is still in its infancy.
A market driven by individual investors
Current data from the bank reveals a massive gap between professional money managers and everyday investors.
Oldenburg shared that 80% of the distribution seen on the platform is coming from "self-directed" business rather than accounts managed by financial advisors.
She emphasized that while "DIY" investors are eager to buy, wealth managers are taking a more deliberate approach.
A managed and stepped journey
The firm’s move into the space has followed a specific timeline.
In August 2024, Morgan Stanley announced it would offer "solicited Bitcoin only ETFs" in brokerage accounts. Since then, the bank has continued to expand that access.
Oldenburg described the rollout as a "very managed and stepped journey" as the firm continues to grow through its advisory business.
The bank is now beginning to look at additional products, such as Ethereum or Solana, to potentially offer on the platform in the future.
The education hurdle for advisors
For Morgan Stanley, the "self-directed" investor is only one piece of the puzzle.
The firm is now focused on the deep work required to help financial advisors understand how digital assets fit into traditional asset allocation models.
Oldenburg highlighted that this transition requires a significant amount of education before advisors can fully integrate crypto into long-term client strategies.
This push for clarity comes as other major institutions provide their own guidance.
Last year, Morgan Stanley’s global investment committee suggested allocations of up to 4% in some portfolios, as reported by CNBC.
Other giants, including Bank of America, BlackRock, and Fidelity, have also supported a range of 1% to 4% for diversified accounts.
For now, the focus remains on bridge-building between the high-speed crypto world and the regulated advisory space.
This article has been published in TheStreet via Yahoo News.
Morgan Stanley sends bold message on crypto asset allocation
Wall Street is still in the beginning stages of adopting cryptocurrency funds, according to a top executive at Morgan Stanley. Speaking at the DC Blockchain Summit, Amy Oldenburg, the bank’s head of digital asset strategy, noted that while some feel crypto has been around for years, the ...
finance.yahoo.com
