BofA & Morgan Stanley Boost Crypto ETF Exposure

Welcome to the US Crypto News Morning Briefing. We bring you key cryptocurrency news for today.

Grab a cup of coffee and take a look at how big banks are gradually entering the Bitcoin and cryptocurrency markets. Specialized companies are expanding their services. The U.S. banking industry is signaling that cryptocurrencies, long considered a niche experiment, are now becoming part of mainstream strategy.

Morgan Stanley applies for Bitcoin/Solana ETF

Momentum towards 2026 accelerated yesterday. Bank of America (BofA) has officially begun recommending that its wealth management clients allocate up to 4% of their portfolios to digital assets. This is a clear sign that cryptocurrencies have been recognized as a legitimate component of a diversified investment strategy.

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Prior to this launch, BeInCrypto first reported on BofA’s plans in early December last year. The contents of this plan indicated that BofA plans to include four Bitcoin exchange-traded funds (ETFs), including BITB, FBTC, Grayscale Mini Trust, and IBIT, as coverage targets from January 5th of this year.

Today, Morgan Stanley also applied for the Bitcoin and Solana ETF, showing another example of major institutional participation.

Morgan Stanley’s submission of S-1 registration is an important milestone for traditional finance (TradFi) to begin introducing cryptocurrency in earnest. The bank, which has $1.6 trillion in assets under management (AUM), is expanding access to Bitcoin and Solana as regulated investment products.

These moves show that major Wall Street companies are turning regulatory filings into real action rather than mere experiments.

These two examples show how traditional financial institutions are responding to market FOMO and rushing to provide cryptocurrency services before customer demand outstrips their capabilities.

“In just four months, we have built the fastest-growing and strongest Bitcoin company in the world. We are proud to announce that American Bitcoin has become the 19th largest public Bitcoin holder in the world… Regular accumulation, tenacious execution, and the best results start now.” – Eric Trump said in a recent post.

Other banks in the U.S. are also expanding into the cryptocurrency space. JP Morgan Chase has been participating for a long time with its own tokens that enable blockchain-based payments, such as JPM Coin. We are also focusing on expanded infrastructure projects surrounding digital assets.

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Goldman Sachs is also restarting its cryptocurrency trading desk, providing new access to the cryptocurrency market for institutional investors. Citigroup has announced its intention to explore custody and trading services, although it is still in the early stages.

Charles Schwab announced plans to offer direct trading of Bitcoin and Ethereum on its customer platform, and PNC Bank is working with Coinbase to support cryptocurrency trading through customer accounts.

Banks experiment with native cryptocurrency products… Adopted as regulatory clarification ↑

State Street is focused on developing stablecoins and tokenized assets (bonds, money market funds, etc.). This shows that banks’ experiments are expanding beyond simple transactions and storage to include cryptocurrency-based financial products.

US Bancorp, which has strengthened its custody-focused services, has resumed Bitcoin custody services for institutional investors, which also includes ETF custody services.

“…we are delighted to be relaunching our services this year. Following increased regulatory clarity, we have expanded our offering to also include Bitcoin ETFs, supporting asset managers with access to custody and custody services.” – Steven Phillipson, vice president of U.S. Bank Wealth, Corporate and Institutional Banking, said in a September announcement.

Meanwhile, BNY Mellon is moving proactively by safely storing BTC and ETH assets on a separate dedicated platform.

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Specialized cryptocurrency banks and fintech partnerships are also playing a significant role in the market.

  • FDIC-insured Cross River Bank partners with Coinbase to support API-based cryptocurrency trading.
  • Anchorage Digital is the first federally chartered cryptocurrency bank in the United States, focusing on institutional custody and blockchain services.
  • Custodia Bank (formerly Urbane Bank) provides cryptocurrency-specific services under a Wyoming state license, demonstrating the growth of a banking ecosystem specialized in digital assets.

Regulatory change has been a key driver. The Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) are now allowing banks to custody cryptocurrency assets, facilitate transactions, and provide digital asset services.

This clarity has emboldened traditional financial institutions to advocate for cryptocurrency services directly. This ultimately becomes a watershed moment for wider adoption.

The flow is as follows:

  • Custody and institutional products represent the first wave of cryptocurrency adoption.
  • This is followed by asset management services and ETFs.
  • Through partnerships with exchanges, banks can enter the market without building their own infrastructure.

As regulatory clarity increases, more agencies are expected to participate. This will further solidify cryptocurrency’s place in mainstream finance.

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chart of the day

Morgan Stanley Bitcoin Trust S-1 Registration filed on January 6, 2026. Source: SEC Filing

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A summary of today’s noteworthy US cryptocurrency-related news is as follows:

Cryptocurrency stock trading trends

company Closing price on January 5th Overview of loaded trading
MicroStrategy (MSTR) $164.72 $165.41 (+0.42%)
Coinbase (COIN) $254.92 $256.00 (+0.42%)
Galaxy Digital Holdings (GLXY) $26.30 $26.32 (+0.076%)
MARA Holdings (MARA) $10.59 $10.58 (-0.10%)
Riot Platforms (RIOT) $14.79 $14.79 (0.00%)
Core Scientific (CORZ) $16.73 $17.35 (+3.71%)
Cryptocurrency stock market opening status: Google Finance

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