Morgan Stanley has filed with the US SEC to launch a spot Bitcoin ETF and a separate Solana fund, a move experts describe as a strategic push into crypto rather than a pure asset-gathering play. ProCap CIO Jeff Park argues the initiative could deliver reputational and long-term benefits through ETRADE and institutional channels, even if inflows lag top rivals. The filing comes as US spot Bitcoin ETFs recently swung from early-2026 net inflows to a single-day outflow of $486.08 million, underscoring volatile investor demand.

Morgan Stanley's newly filed spot Bitcoin and Solana ETFs could strengthen the bank's long-term crypto positioning even if fund inflows remain modest, according to ProCap CIO Jeff Park. He argues the launch may enhance Morgan Stanley's brand, support its ETRADE crypto ambitions, and help attract talent, while Morningstar's Bryan Armour says the bank can quickly migrate existing Bitcoin clients into its own ETFs and add further legitimacy to the crypto ETF market.

CryptoQuant CEO Ki Young Ju expects Bitcoin to trade largely sideways through the first quarter of 2026 as capital inflows into the asset market slow and funds shift toward equities and precious metals. Around the time of his comments, Bitcoin was trading near $90,900, more than 2% below its daily level and off a weekly peak around $94,400. Despite weak sentiment and fears of a muted start to 2026, spot Bitcoin ETFs have recorded strong net inflows in the opening days of the year, and long-term bulls, including Tim Draper and Bitwise's Ryan Rasmussen, still anticipate new highs.

Analysts are framing 2026 as an institutional cycle for Bitcoin, with some pointing to a $150,000 year‑end target. In 2025, TradingView data showed MicroStrategy [MSTR] fell 45% and an October BTC decline triggered $20 billion in liquidations, while RWAxyz reported tokenized assets reached $18 billion, alongside pronounced institutional accumulation versus miner supply.

According to Bull Theory analysts, MSCI's October 10 proposal to remove Digital Asset Treasury Companies from its global indexes and the later ETF filings by Morgan Stanley may be linked to Bitcoin's sharp downturn and recovery. They argue the 31% Bitcoin drop, nearly $18,000 in losses and over $900 billion erased from the crypto market set the stage for institutional accumulation before the January 1, 2026 price rebound and subsequent ETF announcements. Bitcoin is now trading around $91,550 after pulling back 2% from a recent $95,000 local high.

Data from the Bitcoin Fear & Greed Index shows market sentiment has shifted from extreme fear toward a more neutral stance as prices recovered recently. The index, currently at 42 on a 0–100 scale, indicates lingering fear but is close to the neutral band between 47 and 53. Bitcoin briefly traded above $94,000 earlier in the week before retreating to around $92,000, leaving traders split on the market's next direction.

On Thursday, CryptoQuant CEO Ki Young Ju said Bitcoin's big capital inflows have waned and forecast several months of sideways movement, rejecting fears of a 50% drawdown. In the first week of 2026, Glassnode reported a breakout from around $87,000 to $94,400, up 8.5%, and highlighted $99,100 as the Short‑Term Holder cost basis to reclaim for a bull regime.

CryptoQuant CEO Ki Young Ju said on Wednesday that capital flowing into Bitcoin has "dried up" as investors rotate toward stocks and precious metals, and he expects the asset to move "just boring sideways" for the next few months. Bitcoin is trading around $90,890 after retreating from a weekly high of $94,400 in early 2026, even though historical data show strong average gains in February and March.