Bitcoin’s Institutional Embrace Deepens as Morgan Stanley Files for Spot ETF

In a landmark move signaling the accelerating institutionalization of cryptocurrency, Morgan Stanley has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin Exchange-Traded Fund (ETF). The filing, submitted on January 6, 2026, proposes the creation of the "Morgan Stanley Bitcoin Trust," a fund designed to hold physical Bitcoin (BTC) and track its dollar-denominated price performance. This strategic pivot marks a significant evolution for the global investment bank, transitioning from merely distributing third-party crypto products to developing and managing its own proprietary investment vehicle. The move underscores a profound shift in traditional finance's approach to digital assets, treating Bitcoin not just as a speculative asset but as a foundational holding for a regulated, passive investment product. Analysts view this development as a major bullish catalyst for Bitcoin's long-term valuation, as it opens the floodgates for trillions in institutional and retail capital currently sidelined due to regulatory and custodial complexities. The approval of such a fund by the SEC, which has historically been cautious, would provide a federally regulated, accessible, and secure pathway for mainstream investors to gain exposure to Bitcoin's price movements without the technical hurdles of direct ownership. This filing by a pillar of Wall Street like Morgan Stanley adds immense credibility to the asset class and is expected to intensify competitive pressure among financial giants, potentially leading to a wave of similar products. The structure of the trust as a passive ETF aiming for direct price tracking suggests a focus on Bitcoin as a pure macro asset and potential digital gold, rather than a vehicle for active trading strategies. As of early 2026, this development is poised to be a central narrative driving Bitcoin's market structure, liquidity, and its integration into diversified portfolios, reinforcing its position at the forefront of the digital asset revolution in global finance.

Morgan Stanley Files SEC S-1 for Bitcoin Trust, Signaling Institutional Crypto Push

Morgan Stanley has formally entered the race for a spot Bitcoin ETF, filing an S-1 registration with the SEC on January 6. The proposed Morgan Stanley Bitcoin Trust would hold physical BTC, marking a strategic shift from distributing third-party crypto products to building proprietary investment vehicles.

The passive ETF structure aims to track Bitcoin's dollar-denominated price performance through direct holdings, avoiding derivatives or leverage. Daily NAV calculations will aggregate pricing data from major spot exchanges, with custody handled by specialized service providers.

This move follows the bank's gradual crypto adoption since first offering clients access to Bitcoin funds in 2021. Approval WOULD position Morgan Stanley among the first Wall Street giants to launch an in-house Bitcoin tracking product, potentially accelerating institutional capital flows into digital assets.

Coinbase Exec Warns Quantum Computing Could Threaten 33% of Bitcoin Supply

A senior Coinbase executive has sounded the alarm on quantum computing's potential to disrupt Bitcoin's security framework. David Duong, Global Head of Investment Research, suggests the cryptocurrency may be entering a "new regime" as advancements in quantum technology accelerate—though the immediate threat remains theoretical.

Institutional awareness is growing. BlackRock notably flagged quantum risks in its iShares Bitcoin Trust ETF prospectus earlier this year, while U.S. and EU regulators have set 2035 deadlines for migrating critical infrastructure to post-quantum cryptography.

The Core vulnerability lies in "Q-day"—the hypothetical moment quantum computers achieve sufficient power to crack elliptic curve cryptography securing Bitcoin wallets and SHA-256 mining algorithms. Researchers estimate 33% of circulating BTC could be exposed if bad actors gain quantum capability to reverse-engineer private keys from public addresses.

DOJ Defies Trump's Bitcoin Reserve Order with Samourai Wallet Liquidation

The U.S. Department of Justice has sparked controversy by selling 57 forfeited Bitcoin from Samourai Wallet developers, directly violating President Trump's Executive Order 14233. The March 2025 mandate required all seized Bitcoin to be transferred to the Strategic Bitcoin Reserve, yet prosecutors directed the U.S. Marshals Service to liquidate $6.3 million through Coinbase Prime.

This marks the second breach of federal policy by SDNY prosecutors in the Samourai case, following their disregard of a April 2025 DOJ memo prohibiting actions against cryptocurrency services for user activities. The Coinbase Prime wallet now shows a zero balance, suggesting immediate liquidation of the assets.

The MOVE highlights ongoing tension between law enforcement practices and evolving cryptocurrency regulations, particularly regarding Bitcoin's treatment as strategic national infrastructure rather than disposable criminal proceeds.

Canaan Launches Green Bitcoin Mining Pilot in Manitoba, Recycling Heat for Agriculture

Canaan, a leading hardware manufacturer, has initiated a groundbreaking proof-of-concept project in Manitoba, Canada, leveraging liquid-cooled Bitcoin mining equipment to repurpose waste heat for commercial agriculture. The 3 MW pilot, developed in collaboration with Bitforest Investment, explores the viability of high-density computing infrastructure as a sustainable heat source in cold climates.

The project deploys 360 Avalon A1566HA-460T units and four liquid-cooling modules at Bitforest’s tomato greenhouse, targeting 95% uptime over a 24-month period. Canaan estimates that 90% of server electricity can be captured as heat, producing water temperatures above 75°C at an all-in power cost of $0.035 per kilowatt-hour—a compelling economic proposition for energy-intensive farming operations.

The closed-loop heat-exchange system redirects mining-generated heat to pre-warm greenhouse intake water, blending industrial efficiency with agricultural sustainability. This initiative underscores Bitcoin mining’s potential to evolve beyond energy consumption into a circular economy model.

Maine Secures $1.9M Settlement from Bitcoin Depot to Refund Scam Victims

Maine's Bureau of Consumer Credit Protection (BCCP) has finalized a $1.9 million settlement with Bitcoin Depot, a major cryptocurrency kiosk operator. The agreement resolves allegations tied to third-party scams conducted through the company's ATMs.

Funds will compensate Maine residents who lost money converting cash to cryptocurrency at Bitcoin Depot kiosks between 2022 and 2025. The consent decree also grants the company a money transmitter license, though its website currently doesn't list Maine as an active market.

This concludes a two-year investigation into fraudulent activity involving the kiosks. Eligibility for refunds requires proof of residency during the specified period and documented losses from ATM transactions.

Bernstein Affirms Bitcoin Bottom, Projects $150K Target by 2026

Bitcoin's recovery above $80,000 has analysts declaring the market bottom firmly in place. Bernstein's Gautam Chhugani leads the bullish charge, dismissing concerns about cycle peaks with a $150,000 price target for 2026—a forecast bolstered by institutional adoption trends.

The firm challenges bearish narratives tied to historical patterns, framing current momentum as part of a broader 'digital assets revolution.' Liquidity dynamics, particularly from corporate treasuries and ETFs, are reshaping traditional four-year cycle expectations.

Market observers note parallels with 2020's breakout trajectory, where suppressed volatility preceded major rallies. With derivatives markets signaling renewed appetite for risk, Bernstein anticipates accelerated gains through 2027.