Morgan Stanley Drives $60 Billion into Crypto Markets

Morgan Stanley analysts report an influx of $60 billion into digital assets by July, driven by U.S. regulatory changes and increased interest in crypto funds.

The surge reflects growing institutional adoption and regulatory support, potentially shifting market dynamics in favor of assets like Ethereum and Bitcoin as corporate treasuries explore crypto holdings.

Morgan Stanley Fuels $60 Billion Inflow in 2025

Morgan Stanley is a prominent player contributing to the substantial inflow into digital assets, as reported by The Block. Analysts highlighted that nearly $60 billion has entered the crypto market, demonstrating strong institutional interest. This surge is supported by growing inflows into crypto funds, vigorous trading activity on the Chicago Mercantile Exchange, and venture capital investments. Analysts forecast the annual inflows will surpass last year’s record, emphasizing the significance of this trend.

The regulatory landscape in the United States has become more amenable, providing a fertile ground for institutional investments in digital assets. This change has notably benefited Ethereum, which holds a predominant role due to its presence in the decentralized finance (DeFi) space and growing adoption in corporate treasuries alongside Bitcoin. Asset management companies are actively exploring altcoin-based crypto ETFs and are considering incorporating staking mechanisms into their offerings.

“Throughout 2025, we recognize significant capital inflows and growing investor interest in digital assets, especially as regulatory barriers have been reduced.” — Andrew Slimmon, Managing Director, Morgan Stanley Investment Management

Ethereum’s Crucial Role Amid Regulatory Shift

Did you know? Ethereum’s rise in 2025 parallels Bitcoin’s significant institutional uptake in 2020, marking a key crossroad in crypto maturity.

According to data by CoinMarketCap as of July 24, 2025, Bitcoin (BTC) trades at $118,674.43 with a market cap of 2.36 trillion. With a 24-hour trading volume of $74.56 billion, BTC displays a mere 0.60% increase over the past day while Ethereum has been spotlighted for its growing adoption. Market observers keenly watch these fluctuations as they indicate active participation and sentiment in the crypto space.

The Coincu research team points out that continuous regulatory easing, alongside solid technological advancements, is highly likely to fuel further institutional inflows into digital assets. Historical patterns suggest that favorable regulations may propel new market innovations, including increased adoption of DeFi protocols and related technologies, potentially impacting the broader financial ecosystem.