Banks Finally Realize Crypto Isn’t Just for Nerds and Drug Dealers 😱

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Welcome to the US Crypto News Morning Briefing-your daily dose of financial shenanigans and digital gold rushes. 🌟

Grab your coffee (or your crypto wallet, whichever’s more liquid these days) as the big banks finally dip their toes into the Bitcoin pool. After years of treating crypto like a suspicious cousin at Thanksgiving, they’re now acting like it’s the hottest new trend. Spoiler alert: it’s been hot for a while, folks. 🔥

Crypto News of the Day: Morgan Stanley’s Crypto FOMO Kicks Into Overdrive 🚀

The year 2026 is off to a rip-roaring start, with Bank of America (BofA) officially telling its clients to put 4% of their portfolios into digital assets. That’s right, the same bank that once called Bitcoin a “bubble” is now saying, “Hey, maybe this isn’t just Monopoly money after all.” 🤷‍♂️

Back in December, BeInCrypto spilled the beans that BofA was planning to cover four Bitcoin ETFs-BITB, FBTC, Grayscale Mini Trust, and IBIT-starting January 5, 2026. Because nothing says “we’re serious” like a well-timed ETF filing. 📈

Not to be outdone, Morgan Stanley has jumped on the bandwagon, filing for Bitcoin and Solana ETFs. Because if you can’t beat ‘em, join ‘em-and then charge fees for it. 💰

Morgan Stanley ($1.6 trillion AUM) has filed a S-1 registration form, paving the way for a Bitcoin ETF.

Yesterday we got news that Bank of America is recommending up to 4% of a portfolio in “Digital Assets”

We’re going to get news like this all year.

Bitcoin is winning. 🎉

– Zynx (@ZynxBTC) January 6, 2026

Morgan Stanley’s move is a big deal, especially since they’re managing $1.6 trillion in assets. That’s a lot of zeroes, and now some of them are going into Bitcoin and Solana. TradFi is finally waking up, and it’s brought its checkbook. 🏦

This isn’t just passive experimentation anymore-it’s Wall Street putting its money where its mouth is. Or, more accurately, where its clients’ mouths are. Because let’s face it, they’re just chasing the FOMO train before it leaves the station without them. 🚂

“In just 4 months, we’ve built one of the fastest-growing and strongest Bitcoin companies on Earth. Proud to announce that American Bitcoin just leaped to the #19 Largest Public Bitcoin Treasury…Disciplined accumulation. Relentless execution. The best is yet to come,” wrote Eric Trump in a recent post. 🤑

American Bitcoin has increased its total Bitcoin reserve to ~5,427 BTC and achieved a BTC Yield of ~105.0% from its Nasdaq debut on September 3, 2025 through January 2, 2026. 📊

– American Bitcoin (@ABTC) January 5, 2026

Other banks are also getting in on the action. JPMorgan Chase, the same bank that once called Bitcoin a “fraud,” is now all-in with its JPM Coin and blockchain projects. Goldman Sachs is trading crypto like it’s going out of style, and Citigroup is finally dipping its toes in the water. Even Charles Schwab and PNC Bank are partnering with Coinbase to make crypto trading as easy as ordering a pizza. 🍕

Banks Experiment with Crypto-Native Products Because Regulation Finally Caught Up 🏛️

State Street is even developing stablecoins and tokenized assets, because why stop at trading when you can reinvent the entire financial system? Meanwhile, US Bank is back in the Bitcoin custody game, and BNY Mellon is still the cool kid who got in early. 🌟

Specialized crypto banks like Cross River Bank, Anchorage Digital, and Custodia Bank are also making waves. It’s like the Wild West, but with more spreadsheets and fewer cowboy hats. 🤠

  • Cross River Bank partners with Coinbase to make crypto transactions as easy as sending a text. 📱
  • Anchorage Digital is the first federally chartered crypto bank, because why not? 🏛️
  • Custodia Bank is doing its thing in Wyoming, because Wyoming is the new Silicon Valley. Or something. 🌄

Regulatory clarity has been the secret sauce here. The Federal Reserve, OCC, and FDIC finally gave the green light, and now banks are acting like kids in a candy store. Except the candy is Bitcoin, and it’s worth a lot more than a quarter. 🍬

The trend is clear: custody and institutional products first, then wealth management and ETFs, and finally partnerships with exchanges. It’s like a financial domino effect, and crypto is the domino that started it all. 🪨

Chart of the Day 📊

Chart of the Day

Byte-Sized Alpha 🧠

Crypto Equities Pre-Market Overview 📈

Company Close As of January 5 Pre-Market Overview
Strategy (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%)

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2026-01-06 18:38