Crypto Currents: Morgan Stanley files for ETFs as Grayscale pays first yield

Institutional giants made aggressive moves into crypto as Morgan Stanley filed for new funds and Grayscale delivered the first staking yield to ETF investors, providing a tailwind for crypto-adjacent equities and mining stocks. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio

BITCOIN BREAKS $94,000, LIFTING CRYPTO-LINKED EQUITIES: The price of bitcoin (BTC-USD) broke through the $94,000 level on Monday, its highest point since early December, driven by a resurgence in institutional demand. Alongside bitcoin, other major assets saw gains, with ether (ETH-USD) rising over 3% and solana (SOL-USD) climbing nearly 4%. Beyond price action, corporate adoption continues to evolve.

MORGAN STANLEY FILES FOR BITCOIN AND SOLANA ETFS AMID INSTITUTIONAL PUSH: Morgan Stanley (MS) has submitted paperwork to launch its own spot cryptocurrency funds. According to Bloomberg, 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 (GS), JPMorgan (JPM), and Citi (C) already 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 BlackRock (BLK) have already attracted billions in assets.

GRAYSCALE DISTRIBUTES FIRST DIVIDEND-LIKE YIELD FROM ETHER ETF: Grayscale (GRAY) Ethereum-ETP-to-Distribute-Staking-Rewards.html" target="_blank">announced it has completed the first-ever distribution of staking rewards to U.S. ETF investors. The Grayscale Ethereum Staking ETF distributed approximately 8c per share to eligible shareholders, representing proceeds from staking rewards earned in late 2025. This payout marks the first time a U.S.-listed spot crypto ETF has successfully passed blockchain-native yield through to investors, effectively turning ether into a revenue-generating asset similar to a dividend stock. Rather than distributing the cryptocurrency directly, Grayscale monetized the rewards to pay investors in cash, bridging the gap between decentralized finance mechanics and traditional brokerage accounts.

EXCHANGES AND INFRASTRUCTURE PROVIDERS SEE RECORD ENGAGEMENT: Trading platforms are evolving to meet the demands of sophisticated investors. CME Group (CME) reported record trading volumes for 2025, driven significantly by a 139% jump in crypto derivatives.. The exchange noted that institutional engagement is rising, particularly for capital-efficient instruments like micro bitcoin and micro ether futures.

MINERS POST STRONG GAINS LED BY AMERICAN BITCOIN: Bitcoin mining stocks outperformed the broader market as the underlying asset appreciated. As noted by The Block, American Bitcoin (ABTC) led the sector with a 14% jump, pushing the stock back above $2. The rally extended across the industry, with Hut 8 (HUT) rising 13.6% and rig manufacturer Canaan (CAN) adding nearly 9%. Other significant gainers included IREN (IREN), Cipher Mining (CIFR), CleanSpark (CLSK), MARA Holdings (MARA), Bitdeer (BTDR), Bitfarms (BITF), and HIVE Digital (HIVE), most of which posted gains between 5% and 13% as they continue to pivot toward high-performance computing and AI infrastructure.

PRICE ACTION: As of time of writing, bitcoin was trading at $93,448.15, while ether was trading at $3,268.31, according to price data from CoinDesk.