In a recent assessment, the Chief Investment Officer of Sygnum Bank, Fabian Dori, emphasized that current daily tracking of Bitcoin Exchange-Traded Fund (ETF) flows does not capture the fundamental changes taking place in the financial landscape. Dori highlighted that the real narrative centers around the increasing acceptance of Bitcoin (BTC) as a standard component among institutional investors, including pensions, endowments, sovereign funds, and insurers.
Dori cited three significant trends supporting this growing institutional integration of Bitcoin. Firstly, research conducted by JPMorgan’s desk projected that institutional inflows into Bitcoin ETFs could range between $15 billion in a conservative estimate and $40 billion under a more optimistic scenario by 2026. This forecast builds on the substantial $56.6 billion already absorbed by the spot Bitcoin ETF sector throughout 2025.
Secondly, JPMorgan has taken a proactive step by beginning to issue structured notes linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT). Dori described this initiative as a vital piece of infrastructure—what he terms “plumbing”—that indicates a deep and lasting integration of Bitcoin within the financial system.
The third indication Dori referenced is the launch of Morgan Stanley Investment Management’s own spot Bitcoin ETF, MSBT, which recorded an impressive $34 million in trading volume on its first day, placing it in the top 1% of recent ETF introductions.
Dori also addressed the dynamics behind ETF selling, noting that much of this activity is, in fact, a form of portfolio rebalancing. When BTC experiences a rally, an allocation that represents 2% of a portfolio may grow to 4%. As disciplined investors, or allocators, seek to maintain their target allocations, they may sell off portions of their Bitcoin holdings. This selling can misrepresent actual demand as it often appears as outflows on daily financial trackers.
He pointed to a noteworthy example—the IBIT experienced a record outflow of $2.7 billion in December 2025, yet just four months later, with Bitcoin’s value down approximately 30% year-to-date, the ETF attracted $1.5 billion in net inflows, demonstrating a resilient interest in Bitcoin from institutional investors.
Dori intriguing stated that while spot Bitcoin ETFs have not directly generated demand, they have effectively eliminated previous excuses for investors to refrain from allocating to crypto assets. Sygnum’s perspective is echoed by other financial institutions. Fidelity Digital Assets released research suggesting that the conversation around Bitcoin has evolved from whether to invest in BTC to whether one can justify holding a zero allocation. Similarly, Morgan Stanley’s investment management unit encouraged modest crypto allocations alongside regular rebalancing strategies.
In line with this sentiment, 21Shares asserted in a recent report that a 3% allocation to Bitcoin should be considered to potentially gain from what they term “volatility alpha” via systematic rebalancing.
As Dori concluded, he anticipates that by the end of the decade, it will be as commonplace for serious institutional allocators to hold BTC as it is to hold bonds. The pressing question will shift from whether to invest in Bitcoin to the extent of the investment and the rationale behind such decisions.
