Nine years ago, Jamie Dimon said Bitcoin was a fraud, and that anyone working with it at his bank would lose their job. This week, Morgan Stanley launched its own Bitcoin ETF, and Goldman Sachs filed an application for a premium income ETF. In the same week, Trump’s chosen Fed Chair, Kevin Warsh, admitted in his financial disclosures that he invested in Polymarket and Solana.
Wall Street never does anything for trust. It does it only for profit. When these huge institutions collectively look at an asset class, it’s only a matter of time before a massive flow of money begins.
Morgan Stanley’s spot Bitcoin ETF (MSBT) attracted $3.4 billion on its first day with a 0.14% fee, the most competitive rate in the industry. But the real strength isn’t there. Morgan Stanley has 16,000 financial advisors managing $9.3 trillion. Previously, they could only sell third-party products. Now, they will promote their own products. And the important part is that banks are advising their clients to invest 2-4% of their portfolios in crypto.
Goldman Sachs is playing a different game. They’re not only creating a spot ETF, but also a premium income ETF that uses a covered call strategy. Meaning: they will hold Bitcoin, sell call options, and earn premium income. This shows their true target—not small investors, but institutional money that wants steady income.
In the last quarter of 2024, Goldman Sachs held $15.7 billion worth of Bitcoin ETF shares, up 121% from the previous quarter. They’re investing not just in Bitcoin, but also in Ethereum, XRP, and Solana.
But the most telling news this week is Kevin Warsh’s 69-page financial disclosure. This person is set to become Fed Chair in May. His investment portfolio includes Blast, Polymarket, Flashnet, Tenderly, and many other leading crypto projects. This isn’t ordinary investing—it’s investing in the most critical infrastructure of the crypto ecosystem.
When you look at these three events together, a clear picture emerges. Wall Street is redefining Bitcoin from a “speculative asset” to an “income-generating asset.” That will attract pension funds, insurance companies, and university endowment funds that previously stayed away because of “excessive ups and downs.”
What does this mean for small investors? In the short term, more competition and lower fees. In the medium term, an expansion of new products built around Bitcoin. In the long term, when the Fed Chair’s portfolio includes Solana and Wall Street’s two biggest banks compete over Bitcoin products, there’s no need to answer the question, “Is Bitcoin a legal asset?” The question becomes—whose side are you on in this new arrangement?