US banks are chasing the Bitcoin FOMO effect with new ETF applications | US Crypto News

Welcome to the US Crypto Morning News—your quick update on the most important cryptocurrency market news of the day.

Make yourself a cup of coffee and catch up on the news: major US banks are starting to take an interest in Bitcoin and crypto, and specialized units in the industry are expanding their services. The US banking industry is showing signs that crypto is gradually becoming part of a mainstream financial strategy, no longer just a small-scale experiment as it once was.

Crypto news today: Morgan Stanley kicks in crypto FOMO with Bitcoin ETF registration filings and Solana.

The growth trajectory of crypto towards 2026 became even clearer yesterday when Bank of America (BofA) officially recommended that its asset managers allocate up to 4% of their portfolios to digital assets . This is XEM as a strong endorsement of crypto, making it a legitimate part of portfolio diversification strategies.

Prior to the launch, BeInCrypto reported on BofA's plan in early December, stating that the bank would begin supporting four Bitcoin ETFs —BITB, FBTC, Grayscale Mini Trust, and IBIT —starting January 5, 2026.

Today, Morgan Stanley joins this wave by filing for the launch of a Bitcoin and Solana ETF, marking another significant step in the major financial institution's embrace of crypto.

Morgan Stanley's submitted S-1 application represents a major turning point in the acceptance of crypto by traditional financial institutions (TradFi). With total Assets Under Management reaching $1.6 trillion, the bank is expanding customer access to both Bitcoin and Solana through its tightly regulated investment products.

This move shows that Wall Street firms are not just stopping at legal filings but are turning them into practical action plans, rather than just experiments.

The two events mentioned above are prime examples of the transformation of traditional financial institutions: they are accelerating the development of crypto services to meet customer demand and avoid falling behind due to "FOMO".

“In just four months, we’ve built one of the fastest-growing Bitcoin companies in the world. We’re thrilled to announce that American Bitcoin has just risen to 19th place in terms of the largest Bitcoin holdings among publicly traded companies… Steady accumulation, relentless execution. The best is yet to come,” recently Chia Eric Trump.

Many other US banks are also expanding their presence in the crypto sector. JPMorgan Chase Capital has extensive experience with its JPM Coin project – a Token issued by the bank to support blockchain-based payments. Furthermore, they are developing larger infrastructure centered around digital assets.

Goldman Sachs has also relaunched its crypto trading desk for institutional clients, expanding access to the crypto market. Citigroup, although still in its early stages, has also expressed its intention to explore crypto custody and trading services .

Charles Schwab has announced support for direct Bitcoin and Ethereum trading on its platform, while PNC Bank has partnered with Coinbase to allow customers to easily experience crypto trading through their bank accounts.

Banks are experimenting with crypto-based products as clearer regulations encourage adoption.

State Street is currently developing stablecoins and Tokenize assets, including bonds and money market fund shares. This shows that major banks are not just focusing on trading and custody but are also moving towards crypto-derived financial products.

In terms of custody services, US Bank (US Bancorp) has resumed offering Bitcoin custody services to institutional managers, including ETF custody.

“…we are excited to relaunch this service this year. As regulations have become clearer, we have expanded the service to include bitcoin ETFs, providing a comprehensive solution for funds with custody and asset management needs,” Stephen Phillipson, Vice President of US Bank Wealth, Corporate, Commercial and Institutional Banking, announced in September .

In addition, BNY Mellon is also one of the pioneering banks in protecting customers' BTC and ETH assets through a specialized platform.

Besides traditional banks, specialized crypto banks and collaborating fintech companies are also contributing to the market's growth.

• Cross River Bank – an FDIC-insured bank – is partnering with Coinbase to accelerate crypto transactions through its API.
• Anchorage Digital is the first federally licensed crypto bank in the US, specializing in institutional asset custody and blockchain services.
• Custodia Bank (formerly Avanti Bank) offers specialized crypto services under a Wyoming state license, demonstrating the development of a new banking ecosystem for digital assets.

Legal impetus has played a significant role in this development. New guidance from the Federal Reserve, OCC , and FDIC now allows banks to custody crypto assets , support trading, and provide digital asset services to customers.

This clarity has given traditional financial institutions more confidence in publicly introducing crypto-related products, instead of just observing from the sidelines. This is creating a significant turning point for the market to be more widely accepted.

Key trends include:

• Digital asset custody services and products for institutions are in the first wave of adoption.
• Next come asset management products and ETFs.
• Banks partner with exchanges to participate in the market without having to build their own infrastructure.

As the regulatory landscape becomes clearer, more large institutions will join and further solidify crypto's position in the traditional financial sector.

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Alpha is concise.

Here's a summary of today's top crypto news in the US that you should check out:

• Bitcoin ETFs have seen their largest inflows in the past three months as BlackRock signals a significant shift in the crypto sector.
• Will the Capital markets continue to Capital MicroStrategy's "Bitcoin experiment" even without its price advantage?
• Update: Kraken denies rumors of being accessed via the Dark Web .
• The price of Bitcoin at this level could be the deciding factor between a bear market and a bull market .
• arbitrage bots dominate Polymarket , raking in millions of dollars in profits while retail investors are left behind.
• Regulation of the crypto market in India has been tightened as 49 exchanges have registered with the Financial Intelligence Unit (FIU) .
• Bitcoin "whales" increased their activity on exchanges from the beginning of 2026, especially as liquidation became increasingly fragile.

Overview of the cryptocurrency market before the market opens.