Morgan Stanley Crypto Investment Signals New ETF Momentum

Morgan Stanley’s crypto investment headlines re-emerged as the bank got approval for new digital asset trusts in the US. The step is a result of a resurgence of interest in exchange-traded funds and greater institutional involvement. On Monday, bitcoin was traded at over $94,000, and then it dropped a little on Tuesday; ETF flows also recovered after the outflow in late December. The market now waits to see how fast and if at all the regulators will respond with new listings.Morgan Stanley made S-1 applications to the Securities and Exchange Commission for a Morgan Stanley Bitcoin Trust and a Morgan Stanley Solana Trust. The Bitcoin Trust aims to follow the price of Bitcoin and will hold Bitcoin itself. The purchase of Bitcoin will be done with cash through an authorised third party. The Solana Trust will be doing the same, tracking token prices and holding the assets directly, while adding a staking feature for network participation rewards. Staking refers to the practice where token holders lock their tokens to support blockchain operations and earn rewards in proof-of-stake systems. The company is planning to make both products available on a national exchange; however, no tickers or launch dates were revealed. The applications reinforce the belief that major banks will want regulated exposure vehicles as client demand increases.On Monday, spot bitcoin ETFs welcomed a whopping $697.2 million in inflows, the most robust day since October 7 was when inflows peaked at $875.6 million. BlackRock’s iShares Bitcoin Trust was at the forefront with $372.5 million, which was after $287.4 million inflowed on Friday. Following seven consecutive sessions of outflows between December 18 and December 29, the funds’ flows turned positive in three out of four recent sessions. Thus, the total inflows at the beginning of 2026 amounted to $1.168 billion, which implies that investors returned very quickly after positioning at the end of the year. This recovery is a strong indication that ETFs are still the most preferred access routes for large portfolios with compliance and liquidity needs.Goldman Sachs has come out with an outlook for the sector that reflects a selectively constructive position for 2026. The bank is predicting around a 10% compound annual growth rate in the revenues of all crypto-related businesses. The analysts are betting on hybrid finance models to be the next winners, while pure digital specialists will be left behind, with the integration of traditional platforms with blockchain services being the main factor of this change. Goldman has upgraded Coinbase from Hold to Buy and also upped its target price to 303 from 294.

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