Morgan Stanley Files for Bitcoin and Solana ETFs

As bitcoin, ethereum and other cryptocurrencies see major legal, institutional, and technological developments, the financial landscape continues to adapt. Stay up on the crypto news that matters with the "Crypto Currents" weekly from The Fly. Also, join us for your essential daily recap, every day at 2 PM ET on FlyCast radio.MORGAN STANLEY FILES FOR BITCOIN, SOLANA ETFS:Morgan Stanleyhas submitted paperwork toBloomberg's Vildana Hajric reported Tuesday. The bank filed for a bitcoin trust and a solana trust, marking its first direct entry into the ETF issuer space for digital assets. The proposed solana product is notable for allocating a portion of its holdings to be staked, a process that earns network rewards in a similar fashion to being paid dividends on traditional equities. This filing arrives as heavyweights deepen their involvement in the sector, with firms like Goldman Sachs, JPMorgan, and Citialready expanding their institutional crypto trading, custody, and tokenization efforts. While Morgan Stanley has previously allowed clients to trade ETFs from other issuers, this move signals a shift toward proprietary product offerings in a market where competitors like BlackRockhave already attracted billions in assets.WORLD LIBERTY FINANCIAL FILES FOR NATIONAL TRUST BANK CHARTER:World Liberty Financial announced Wednesday that WLTC Holdings filed a de novo application to the Office of the Comptroller of the CurrencyNational Association, a proposed national trust bank purpose-built for stablecoin operations. The charter will position WLTC to issue USD1, the dollar-backed stablecoin that has reached over $3.3B in circulation in its first year. The trust company plans to serve institutional customers, including cryptocurrency exchanges, market makers, and investment firms. WLTC will also offer digital asset custody and stablecoin conversion services, enabling holders of other stablecoins to move into USD1."This application marks a further evolution of the World Liberty Financial ecosystem. USD1 grew faster in its first year than any other stablecoin in history," said Zach Witkoff, the proposed President and Chairman of World Liberty Trust Company. "Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity."COINCHECK ENTERS AGREEMENT TO ACQUIRE 3IQ:Coincheck Groupannounced Thursday that it has entered into a stock purchase agreement with its majority shareholder, Monex Group, as seller, toan alternative digital asset manager. 3iQ is based in Ontario, Canada. Pursuant to the agreement, based on an agreed value for 3iQ of $111,840,476, and an agreed value for Coincheck Group stock of $4.00 per ordinary share, all issued and outstanding shares beneficially owned by Monex in 3iQ's holding company, constituting approximately 97% beneficial ownership of 3iQ, are to be exchanged for 27,149,684 newly issued ordinary shares of Coincheck Group. The agreement also contemplates that between signing and closing Coincheck Group will offer the same or substantially equivalent acquisition consideration terms to 3iQ's minority shareholders, issuing to them in the aggregate up to 810,435 Coincheck Group ordinary shares, which would result in Coincheck Group beneficially owning 100% of 3iQ. Closing of the transaction, which is subject to customary undertakings and certain conditions, including regulatory approvals and confirmatory due diligence, is expected during 2Q26."We expect that 3iQ will bring to Coincheck Group proven innovation, expertise and institutional product offerings and infrastructure recognized in the digital asset investment management space," said Gary Simanson, CEO of Coincheck Group. "By combining our strengths, we believe we will be better positioned to meet the needs of institutional and sophisticated investors and firms, including traditional financial institutions now seeking to include digital assets in their portfolio offerings to their customers. We also anticipate that the acquisition will be accretive to our earnings."Additionally, Compass Point initiated coverage of Coincheck withSTRATEGY BUYS MORE BITCOIN:On Monday, Strategyannounced an update on its bitcoin holdings. The company reported acquiring three bitcoin for approximately $0.3M at an average purchase price of $88,210 between December 29 and December 31. The company also reportedat an average purchase price of $90,391 between January 1 and January 4. As of January 4, Strategy holds 673,783 bitcoin acquired for an aggregate purchase price of approximately $50.55B.Additionally on Wednesday, shares of Strategy jumped after MSCIdecidedfrom the MSCI Global Investable Market Indexes as part of its February review. "However, MSCI intends to open a broader consultation on the treatment of non-operating companies generally," the index provider said. "Feedback from the consultation confirmed institutional investor concern that some DATCOs exhibit characteristics similar to investment funds, which are not eligible for inclusion in the MSCI Indexes. Feedback also highlighted that DATCOs may represent a subset of a wider group of entities whose business activities are predominantly investment-oriented rather than operational," it added.Meanwhile, Clear Street lowered the firm's price target on Strategyon the shares. The firm cited its new sum-of-the-parts valuation for the target cut. The drop reflects lower bitcoin prices and treasury yield assumptions, the analyst said. Clear Street says Strategy remains a "differentiated and compelling" vehicle for leveraged bitcoin exposure on a per-share basis.COINBASE UPGRADES:Goldman Sachs upgraded CoinbasetoThe company's recent product launches enhance the competitiveness of its core business, the analyst said. Further, Goldman views Coinbase as a "best-in-class play" on the growth of crypto infrastructure. The company's scale and brand recognition continue to drive above average-revenue growth and market share gains, the firm contended.BofA also upgraded Coinbase to. The stock is off 40% from its July highs, but under the surface of the Q4 crypto correction the company's product velocity has increased and its total addressable market expanded in parallel, the analyst said. Coinbase detailing its expansion into stock/ETF trading and prediction markets last month for the first time supports its objective of becoming the "everything exchange" and cross-selling more products to its existing users, the analyst added.Meanwhile, Rosenblatt lowered the firm's price target on Coinbaseon the shares. After a strong Q3 and record October, Coinbase trading volumes have decelerated materially, noted the analyst, who now models Q4 total trading volume of about $207B, down 35% from the firm's previous estimate. However, the firm thinks this slowdown has been largely captured in the stock and sees material upside potential from Coinbase's product expansion initiatives, the analyst said.Bernstein also lowered the firm's price target on Coinbaseon the shares. For 2026, the firm expects a tokenization supercycle - tokenization of the dollar, tokenization of capital markets, tokenization of events. Bernstein still feels good about bitcoin despite the weak sentiment in Q4. It believes with reasonable confidence that bitcoin and broader digital asset markets have bottomed.Additionally, Barclays lowered the firm's price target on Coinbaseon the shares. The firm updated the company's model ahead of the Q4 report. Coinbase's Q4 saw softer trading volumes, mixed crypto asset prices, and decelerating USDC growth, the analyst said.OTHER CRYPTO NEWS:Geminiprice target loweredat Goldman SachsCircle Internetprice target raisedat Goldman Sachs, loweredat BernsteinBitmine Immersioninitiatedat Cantor Fitzgerald, announcesCore Scientificupgradedat BTIGSharpLink Gaminginitiatedat Cantor Fitzgerald, price target loweredat Alliance GlobalGrayscalesaysDeFi Development Corp.partners, selected byBullishprice target loweredat BernsteinStoneX Digitalsecures, entersCleanSparknamedat Clear Street, initiatedat MaximRumble, Tether launchDigital Currency Xexecuteswith EdgeAI FoundationUpexito implementBTCSseesup 290% year-over-yearSUI Groupprice target loweredat Cantor FitzgeraldCRYPTO STOCK PLAYS:Publicly traded companies in the space include Bit Digital, Coinbase, Core Scientific, Greenidge Generation, Mara Holdings, Strategy, Riot Platformsand TeraWulf.PRICE ACTION:As of time of writing, bitcoin was roughly flat this week at $90,064 in U.S. dollars, according to CoinDesk.