- Morgan Stanley is the latest Wall Street player to join the crypto ETF rush.
- Bitcoin price is hovering around $93,000, down 26% from its all-time high set in October.
- ETFs have enjoyed nearly $1 billion in net inflows in the first week of 2026.
Morgan Stanley is launching its own Bitcoin exchange-traded fund which means crypto is crossing a new cultural rubicon, industry insider says.
Jeff Park, investment chief at ProCap BTC and Bitwise adviser, argues that offering a Bitcoin ETF has become a key social requirement for financial institutions seeking relevance with investors in 2026.
“Bitcoin is ‘socially’ important just as much as it is ‘financially’ important as a product to offer to customers,” Park said on X.
“Every asset manager knows that having a Bitcoin ETF communicates that they are forward thinking, young, and a little edgy that allows targeting the most challenging investor cohort that everyone wants to reach: [ultra-high net worth] independent investors,” he said.
Morgan Stanley’s Tuesday filing comes as Wall Street’s banks push deeper into crypto. White-shoe banks including Goldman Sachs, JPMorgan, and Citi are all stepping up institutional digital asset initiatives, spanning trading, custody, and tokenisation.
“Morgan Stanley is making the bet that even if their ETF doesn’t scale to blockbuster success, there’s an intangible benefit that will help build their clout,” Park said.
More than $100 billion is already parked across some 14 US funds, according to data compiled by DefiLlama. BlackRock’s iShares Bitcoin Trust leads the pack with $67 billion in assets under management.
Bitcoin ETFs have enjoyed nearly $1 billion in new inflows in the first week of 2026, DefiLlama data shows.
‘Much bigger’ market
Morgan Stanley’s push means the demand for crypto products is much bigger than anyone expected, according to Park.
“It is unheard of for a vanilla ETF product to launch two years after the first to market has already secured the liquidity throne,” he said.
Morgan Stanley share price is up 6% in the first week of 2026.
The bank’s distribution is what will set it apart from competitors such as BlackRock or Fidelity, according to Park.
“It means we are still so early.”
Crypto market movers
- Bitcoin is down 1.6% over the past 24 hours, trading at $91,929.
- Ethereum is trading sideways over the past 24 hours at $3,226.
What we’re reading
- Ethereum to $250,000? Tom Lee charts targets as Bitmine stock price jumps — DL News
- What BlackRock, Coinbase and 11 other industry giants predict for crypto in 2026 — DL News
- Why Crypto Has Changed and What It Takes to Win in 2026 — Unchained
- The Institutional Playbook for Crypto in 2026 (Retail Is Late Again) w/ Zac Prince — Milk Road
- 2025 in memecoins: Trump’s token, scandals, ETFs and lawsuits — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
