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.
Institutional filings often signal longer-term capital interest rather than short-term price moves. [Source: Religare Broking]
Why Is Morgan Stanley Crypto Investment Expanding Through ETFs?
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.
ETF Inflows Rebound As Investor Appetite Returns
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.
ETF flow reversals often reflect shifts in institutional risk appetite at the start of new quarters. [Source: Lxme]
What Does Goldman Sachs See For Crypto In 2026?
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.
The bank has pointed to product launches, infrastructure strength, and growing subscription revenue as factors for its upgrade. Moreover, custody services and stablecoins are now major contributors to the company’s revenues. Analysts have suggested that the firm may be transitioning from cyclical to structural growth patterns.
Tailwinds And Risks Shape Investor Strategy
Goldman took note of the 2025 GENIUS Act as an indication of support for stablecoin operators and exchanges. The probable passage of the CLARITY Act in early 2026 would also facilitate the area of tokenised equities.
All these may attract institutions more and also enlighten the legal aspect of the operations. Yet, Rosenblatt Securities reduced its price target on Coinbase to 325 from 470, pointing to the slower trading volumes in the fourth quarter.
The company is now envisioning volumes around $270 billion, which is nearly 35% lower than their earlier estimates. However, Rosenblatt continued to give a buy rating, citing the upside from product expansion and new services.
Regulatory clarity can drive growth, yet trading activity still depends on retail engagement cycles. [Source: Outlook India]
Will Morgan Stanley Crypto Investment Shift Market Leadership?
According to Goldman, volumes of trading might increase significantly if the retail market returns to its normal size. The present activity per account is still about 35% lower than the 2021 highs, suggesting there is a possibility of improvement.
However, interest rate sensitivity is still a risk, particularly in the case of stablecoins. Goldman predicts that a 25 basis point decrease would result in Circle losing approximately 5% of its revenue.
Apart from exchanges, Goldman has picked Robinhood, Interactive Brokers, and Figure Technology Solutions as the top-rated companies. In the mining and infrastructure sector, Core Scientific saw an increase after BTIG raised its rating on the stock to buy. The analysts are expecting more contracts related to high-performance computing as the demand for power infrastructure continues to be strong.
Also read: JPMorgan’s Crypto Pivot: How Institutional Adoption Reshapes Digital Assets in 2026
FAQs
1: What Did Morgan Stanley File With Regulators?
Morgan Stanley filed separate S-1 registrations for a Bitcoin Trust and a Solana Trust, designed to hold assets directly and track token prices.
2: How Are Bitcoin ETF Flows Trending In 2026?
Spot bitcoin ETFs began 2026 with $1.168 billion in inflows, after late December outflows reversed early in January.
3: Why Is Staking Included In The Solana Trust?
Staking allows the trust to support network operations and earn rewards, which may enhance total returns over time.
4: Which Crypto Stocks Do Analysts Prefer For 2026?
Goldman favours Coinbase, Robinhood, Interactive Brokers, and Figure Technology Solutions, citing infrastructure and platform growth.
