Crypto Enters Round Two of Institutional Adoption, Led by Morgan Stanley
- Binance Research says crypto markets are shifting away from retail-driven momentum
- Institutional capital and long-term positioning are becoming dominant forces
- Morgan Stanley’s ETF filings signal deeper Wall Street engagement
- Macro diversification trends could support digital assets in 2026
Crypto markets may be entering a new phase of institutional adoption, as long-term capital allocation and strategic positioning begin to outweigh retail-driven trading activity, according to a recent report from Binance Research.
Despite a weak close to 2025 for digital assets, Binance described a “structural pivot” underway across the market. The report pointed to several potential catalysts behind the shift, including sovereign accumulation by emerging economies and ongoing legislative discussions in the United States around the creation of a strategic digital asset reserve.
Following the approval of US spot Bitcoin exchange-traded funds in early 2024, Binance believes the market has now moved into a “second round” of institutional adoption. This phase is marked by deeper participation from traditional financial institutions that are no longer acting solely as intermediaries, but increasingly as product designers and long-term allocators.
Morgan Stanley Signals Wall Street’s Next Move
As evidence of this trend, Binance Research highlighted recent S-1 registrations by Morgan Stanley for Bitcoin and Solana exchange-traded funds. The filings suggest that major Wall Street firms are positioning themselves early in anticipation of broader demand for crypto-based investment products.
According to Binance, this shift could create competitive pressure on rivals such as Goldman Sachs and JPMorgan, pushing them to accelerate their own crypto strategies to avoid losing ground in a growing asset management segment.
The report also noted relief across the sector after MSCI confirmed it would not remove digital asset treasury companies from its market index, at least for now. Such a move could have triggered an estimated $10 billion in forced selling, creating additional downside pressure for crypto-exposed firms.
Macro Trends Could Support Crypto in 2026
Binance Research pointed to broader macroeconomic forces as another potential tailwind for digital assets. Elevated concentration in traditional equity markets, particularly among large-cap technology stocks, has increased concerns about crowding risk among institutional investors.
In 2025, the ten largest companies in the S&P 500 accounted for more than half of the index’s total gains, largely driven by enthusiasm around artificial intelligence. Binance suggests this imbalance could encourage portfolio managers to diversify into alternative asset classes, including digital assets.
As investors reassess exposure to mega-cap equities, incremental capital flows into crypto may increase. Meanwhile, debate continues around Bitcoin’s long-term cycle, with some analysts arguing that the rally did not conclusively end at its October peak near $126,000.
