Bitcoin and crypto prices have hit a standstill in recent months following a surge into 2025, as fears of a bitcoin price crash unsettle traders. The bitcoin price has remained relatively stable since May, retreating from its August high of $124,000 per bitcoin as Tesla’s billionaire CEO Elon Musk delivers a significant warning of $37 trillion. The bitcoin price has retreated from its August high, yet it continues to hold significantly above the trading levels seen during the majority of 2024.
In a striking development, Goldman Sachs has issued a warning regarding a potential collapse of the U.S. dollar, while Wall Street powerhouse Morgan Stanley is preparing to launch bitcoin and crypto trading services by 2026. “We are well underway in preparing to offer crypto trading through a partner model to E-Trade clients in the first half of 2026,” Jed Finn, head of wealth management at Morgan Stanley, said, adding that “offering clients the ability to trade crypto is the tip of the iceberg.” A Morgan Stanley spokesperson informed that at launch, E-Trade clients will have the opportunity to trade bitcoin, ethereum, and solana. Morgan Stanley anticipates that tokenized versions of traditional financial assets on blockchains will “significantly disrupt” the wealth management industry. “Tokenized substitutes for cash start accruing interest the moment they enter the wallet. The rest of the asset classes will follow suit in seeking this efficiency,” Finn wrote in the memo, echoing BlackRock chief executive Larry Fink who has said crypto-based tokenization will create a “revolution” on Wall Street.
“We recognize significant potential in the cryptocurrency sector, not only regarding crypto as an investment for our clients but also in relation to and the broader implications of tokenization.” Morgan Stanley, recognized as one of the most optimistic Wall Street giants regarding bitcoin and crypto, made headlines last August by making bitcoin exchange-traded funds accessible to its wealth advisors. Now, the firm is set to expand its offerings by providing crypto trading on E-Trade through a collaboration with Zerohash, a key infrastructure provider for digital assets. This week, Zerohash, a provider of crypto trading, tokenization, and stablecoin infrastructure for financial institutions, secured $104 million at a $1 billion valuation in a funding round led by Interactive Brokers, according to a report by Fortune.
In 2023, Wall Street witnessed a significant shift as major financial institutions submitted a wave of spot bitcoin ETF applications, ultimately succeeding in gaining regulatory approval for bitcoin funds. BlackRock’s spot bitcoin ETF made a significant entrance onto Wall Street in early 2024, rapidly becoming the fastest growing ETF in history and currently managing nearly 750,000 bitcoin valued at $88 billion for its investors. BlackRock, managing approximately $10 trillion in assets for investors, led Wall Street’s initiative to introduce a long-anticipated spot bitcoin ETF in 2023, with its IBIT bitcoin fund taking the forefront among a series of funds that debuted in January 2024.