Crypto Market Update: Morgan Stanley Spot Bitcoin ETF Makes NYSE Debut

Bitcoin (BTC) was priced at US$71,280.98, up by 3.3 percent over the last 24 hours.

Bitcoin hit a three week high on Wednesday after a sudden ceasefire deal between Washington and Tehran sent a wave of relief through global financial markets.

The leading cryptocurrency marked its strongest performance since mid-March, dragging the rest of the market upward. This rally was sparked by US President Donald Trump’s decision to suspend bombing campaigns for two weeks, a move aimed at reopening the economically vital Strait of Hormuz.

Furthermore, US spot Bitcoin exchange-traded funds (ETFs) drew in an impressive US$471.3 million on Monday alone, a dramatic pivot from the heavy outflows seen just weeks prior. Even with this jump, Bitcoin still sits roughly 40 percent below its US$126,000 peak from last October, highlighting the long road to a full recovery.

At closing, perpetual funding sat slightly negative around −0.002, signalling that long leverage is not leading the move. At the same time, four‑hour liquidations are skewed toward short positions, suggesting that some of the upside came from bears being forced out rather than from fresh spot demand.

Bitcoin open interest slipped modestly on the one‑hour and four‑hour windows after the initial pop. The rally looks fragile in the near term, but there is room to extend higher if spot buyers step in. Absent that follow‑through, the structure points to a squeeze‑and‑fade pattern rather than a clean breakout.

Altcoin price update

• XRP (XRP) was priced at US$1.35, up by 2.4 percent over 24 hours.

• Solana (SOL) was trading at US$83.02, trading 1.7 percent higher over 24 hours.

Today's crypto news to know

Morgan Stanley debuts spot Bitcoin ETF

Morgan Stanley (NYSE:MS) became the first major US commercial bank to issue its own spot Bitcoin ETF product on Wednesday. The Morgan Stanley Bitcoin Trust began trading on NYSE Arca under the ticker MSBT.

“We are proud to introduce MSBT to the marketplace and believe this new ETP aligns with long-term trends in financial innovation and serves to strengthen the range of investments we provide investors,” said Ben Huneke, head of Morgan Stanley Investment Management, in a press release.

“MSBT is an example of how leveraging Morgan Stanley’s collective strength and deep expertise across asset classes and market segments can add value for existing clients, unlock new investor opportunities and continue to pursue compelling and innovative investment ideas that solve investor challenges.”

White House releases study on stablecoin yield

The White House Council of Economic Advisers released a study examining stablecoin yield and its impact on deposit flight and bank lending, and its findings directly contradict concerns raised by some Senate Banking lawmakers.

The report finds that eliminating stablecoin yield would increase bank lending by just 0.02 percent, approximately US$2.1 billion, while resulting in a net welfare loss to consumers.

“Even stacking every worst-case assumption, the model produces only US$531 billion in additional aggregate lending, which corresponds to a 4.4 percent increase in bank loans as of 2025Q4,” the executive summary states.

“That figure requires the stablecoin market to grow to roughly six times its current size as a share of deposits, all reserves to be locked in unlendable cash rather than treasuries, and the Federal Reserve to abandon its current monetary framework," it continues. "Even under those implausible conditions, community bank lending only rises by US$129 billion, corresponding to an increase of 6.7 percent. The conditions for finding a positive welfare effect from prohibiting yield are similarly implausible. In short, a yield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings."

SEC concedes past crypto crackdowns failed to protect investors

In a surprising policy reversal, the US Securities and Exchange Commission (SEC) has admitted that many of its past crypto enforcement actions provided no real benefit to investors.

A formal report for fiscal year 2025 acknowledges that the agency misallocated taxpayer resources to pursue "novel legal theories" and chase media headlines. Under the new leadership of Chair Paul Atkins, the commission is officially moving away from its previous strategy of "regulation by enforcement."

The report notes that dozens of prior cases involving record-keeping and registration violations failed to identify any direct financial harm to the public. Atkins emphasized that the SEC will now focus its energy on actual fraud, market manipulation, and individual wrongdoers who cause tangible losses.

Securitize, Currenc tokenize public equity

Tokenization platform Securitize announced it has tokenized the ordinary shares of Currenc Group (NASDAQ:CURR) on both Ethereum and Solana. The tokenized shares are intended to support 24/7 global trading, lower transaction costs, fractional ownership to six decimal places and integration with DeFi uses like collateral in lending protocols, automated market makers and smart‑contract portfolio strategies.

Currenc is a fintech focused on cross‑border payments, e‑wallet infrastructure and AI‑powered enterprise tools. In a press release, the company framed the move as a step toward more functional, globally accessible public markets.

Securitize’s pending SPAC business combination with Cantor Equity Partners II is expected to close in 1H 2026, subject to approvals, after which the combined company would trade as Securitize Holdings under the ticker “SECZ.”

CME Group expands suite with Avalanche and Sui

CME Group (NASDAQ:CME) is doubling down on its crypto derivatives strategy by adding Avalanche (AVAX) and Sui (SUI) futures to its regulated exchange on May 4.

The launch will include standard contracts alongside "micro" versions to accommodate both massive hedge funds and smaller professional traders. CME recently saw record-breaking demand, with March crypto trading volumes averaging US$8 billion in notional value per day.

To keep up with the "always-on" nature of the market, the exchange also confirmed it will move its crypto products to a 24/7 trading schedule starting May 29.

Visa unveils Intelligent Commerce Connect, an AI‑driven shopping rail

Today, Visa (NYSE:V) announced the launch of an “Intelligent Commerce Connect,” a new solution that lets artificial intelligence (AI) agents shop and pay across merchants and payment networks.

The launch follows Visa’s ongoing experiments with AI‑driven payments and blockchain‑based settlement, including USDC pilots on Ethereum and Solana and early work on tokenized deposits.

The solution is a new on‑ramp for agentic commerce that sits on top of the existing Visa Acceptance Platform and gives shopping agents a standardized way to see merchant catalogs and initiate card payments through one integration.

Paysafe, MoonPay launch crypto payment option for gaming

A new partnership between Paysafe (NYSE:PSFE) and MoonPay is officially bringing "Pay with Crypto" options to the high-growth US iGaming and fantasy sports sectors. This integration allows players to fund their accounts using stablecoins like USDC or other major digital assets, circumventing traditional banking hurdles.

Once a user selects the crypto option at checkout, the assets are instantly converted into US dollars via MoonPay’s commerce checkout system. Players can execute these transactions quickly by scanning a mobile QR code or linking their existing digital wallets directly. For gambling operators, the system offers flexible settlement choices, including the ability to receive funds in stablecoins or fiat through virtual accounts.

The rollout is supported by the Paysafe Gateway, which already manages traditional card payments and various digital wallets under a single integration.