Wall Street is gradually integrating Bitcoin into its core infrastructure.
Dori points out that three key events are driving changes in market dynamics. JPMorgan recently predicted that institutional inflows into Bitcoin ETFs could range from a conservative estimate of $15 billion to an optimistic estimate of $40 billion by 2026. These predictions are based on a significant inflow of $56.6 billion into spot Bitcoin ETFs in 2025.
In a sign of increasing mainstream acceptance, JPMorgan has begun issuing structured notes linked to BlackRock's iShares Bitcoin Trust ETF (IBIT). Dori describes this as a permanent financial "pipeline," indicating that access to Bitcoin has been embedded in Wall Street's toolbox.
Morgan Stanley Investment Management has also launched its own spot Bitcoin ETF, MSBT, which saw trading volume of approximately $34 million on its first day. This debut places it in the top 1% of all recent ETF launches, highlighting the rising institutional demand.
Sygnum, a Swiss digital asset bank serving institutional investors and individuals, is known for its regulatory approach to crypto banking and asset management. Its leadership and research regularly inform industry discussions on the integration of blockchain technology with mainstream finance.
Rebalancing and Long-Term Allocation Trends
Dori mentions that the mechanics of portfolio management may lead to misleading signals in daily ETF liquidity data. When Bitcoin prices rise, the fixed percentage in a portfolio naturally increases, prompting institutions to rebalance by selling part of their holdings. These actions appear as outflows but are actually part of regular investment discipline.
For instance, BlackRock's IBIT ETF experienced a record outflow of $2.7 billion in December 2025. However, within four months, and after a roughly 30% price drop in Bitcoin year-to-date, net inflows returned to $1.5 billion, emphasizing that demand remains despite short-term volatility.
Dori's core argument is that spot Bitcoin ETFs do not create new demand but rather eliminate previous barriers to institutional adoption.
“Spot Bitcoin ETFs do not create demand. They eliminate an excuse,” emphasized Fabian Dori, Chief Investment Officer of Sygnum Bank.
Growing Consensus Among Leading Investment Firms
Several major asset management firms have confirmed the increasing importance of Bitcoin in investment portfolios. Fidelity Digital Assets noted in a research report from March that investment discussions are shifting from whether to include Bitcoin to defending any decision to exclude it.
Morgan Stanley Investment Management's analysis released in April suggested that portfolios should have a moderate allocation to digital assets, with regular reviews and rebalancing. Meanwhile, 21Shares advocates for a 3% allocation to Bitcoin, arguing that disciplined rebalancing can help investors benefit from market volatility.
Looking ahead, Dori envisions a...