Institutions Just Flipped the Switch: Wall Street Is Charging Full-Speed Into Crypto
Major Wall Street institutions are accelerating their involvement in the crypto market, a trend driven by the approval of spot Bitcoin and Ethereum ETFs, improved regulatory clarity, and the potential for portfolio diversification.
Recent news highlights significant moves by major banks into offering crypto products and services.
Recent Institutional Activity
Morgan Stanley has filed paperwork to launch both Bitcoin and Solana trusts, marking a direct entry into crypto-focused exchange-traded products for one of the ten largest U.S. banks. This follows their previous plan to allow E*Trade clients to trade tokens in 2026.
Bank of America began allowing its wealth advisers to recommend crypto allocations in client portfolios at the start of 2026.
BlackRock's Bitcoin ETF suite became its top revenue source in late 2025, gathering nearly $100 billion in allocations.
Goldman Sachs, JPMorgan Chase, and BNY Mellon are among the institutions that have developed crypto services for their clients, focusing on custody and trading.
Key Insights
Regulatory Clarity: New U.S. legislation like the GENIUS Act for stablecoins and the expected CLARITY Act in January 2026 are creating a more predictable legal environment, which reduces risk for large financial players.
ETFs as a Gateway: The approval of spot Bitcoin ETFs has been a significant catalyst, allowing institutions to gain exposure through regulated and familiar investment vehicles rather than holding the underlying assets directly.
Diversification and Performance: Institutions are attracted by crypto's historical performance (Bitcoin and Ethereum outperformed most traditional assets in 2023) and its potential as a hedge and a diversification tool within their portfolios.
Infrastructure Improvements: Advancements in secure custody solutions and trading platforms tailored for institutional needs have addressed major security and operational concerns.
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