The Daily: Morgan Stanley files for spot Bitcoin and Solana ETFs as inflows enter 2026 ‘like a lion,’ and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Tuesday! LIT, XRP, and Metaplanet stock were among the biggest gainers overnight, jumping 14%, 12%, and 10%, respectively, amid a positive start to the week for the crypto sector.

In today’s newsletter, Morgan Stanley files for spot Bitcoin and Solana ETFs as BTC products see their largest daily inflows since October, Ethereum’s validator exit queue drops to zero, and more.

Meanwhile, Brian Quintenz joins SUI Group’s board following his failed CFTC chair bid. Plus, Lighter rolls out 24/5 equity perps trading.

P.S. Don’t forget to check out The Funding, a biweekly rundown of crypto VC trends. It’s a great read — and just like The Daily, it’s free to subscribe!

Morgan Stanley files with SEC for spot Bitcoin and Solana ETFs

Morgan Stanley filed S-1 registration statements with the U.S. Securities and Exchange Commission to launch spot Bitcoin and Solana ETFs, signaling a deeper push into regulated crypto products.

• The Wall Street giant submitted separate filings for a Bitcoin Trust and a Solana Trust, with its proposed Solana fund including a staking feature.
• If approved, the filings would place Morgan Stanley alongside major spot crypto ETF issuers such as BlackRock and Fidelity, reflecting growing demand for digital assets within mainstream investment products.
• The move comes as cumulative U.S. spot crypto ETF trading volume recently surpassed $2 trillion, with spot Bitcoin ETFs alone holding more than $123.5 billion in assets.
• Morgan Stanley’s filings arrive amid a more crypto-friendly regulatory backdrop at the SEC following President Trump’s return to office and the agency’s rollout of faster crypto ETF generic listing standards.
• The move also builds on the firm’s broader crypto strategy, including a recommended 4% allocation cap for opportunistic portfolios and expanded crypto access across all client accounts, including retirement plans.

Spot Bitcoin ETFs report $697 million in net inflows, largest daily total since October

U.S. spot Bitcoin ETFs pulled in $697 million of net inflows on Monday — the largest daily total since October — as crypto sentiment improved at the start of 2026.

• The surge pushed two-day inflows to nearly $1.2 billion, with demand spread broadly across issuers, led by BlackRock’s IBIT ($660 million) and Fidelity’s FBTC ($279 million).
• Bloomberg Senior ETF Analyst Eric Balchunas said on X that spot Bitcoin ETFs are “coming into 2026 like a lion,” adding that the early inflow pace implies roughly $150 billion annually if momentum holds.
• Rachael Lucas, crypto analyst at BTC Markets, said the renewed ETF buying reflects “cautious optimism from major asset allocators,” with ETF flows currently underpinning crypto prices even as the medium-term outlook remains dependent on macro and regulatory stability.

Ethereum staking sees institutional return as validator exit queue collapses

Ethereum’s validator exit queue has fully unwound, reaching zero early Tuesday, down substantially from its September peak of 2.67 million ETH.

• At the same time, the entry queue has swelled to around 1.3 million ETH, reflecting renewed willingness from large holders to lock up ether as staking flows flipped back to net positive.
• Institutional players are among those driving the shift, including BitMine, which has staked 659,219 ETH since late December, alongside growing participation from staking-enabled Ethereum ETFs.
• The momentum coincides with steadier network conditions, with Ethereum currently supporting nearly 1 million active validators securing 35.67 million ETH, while ether prices rebound modestly.

Community banks sound alarm on yield-bearing stablecoin loophole in GENIUS

The American Bankers Association’s Community Bankers Council urged U.S. senators to tighten rules around yield-bearing stablecoins, warning that loopholes in the GENIUS Act could siphon deposits away from local banks.

• Community bankers said deposit outflows into yield-generating stablecoins would weaken banks’ ability to lend to small businesses, farmers, students, and homebuyers who rely on local credit.
• Banking groups, including ABA President Rob Nichols, have argued that weak prohibitions on stablecoin rewards could divert trillions of dollars from the traditional banking system if left unaddressed.
• However, crypto advocacy organization the Blockchain Association has argued that stablecoin rewards do not drive disproportionate deposit outflows and warned that banning them could undermine competition and regulatory clarity.

Growing tomatoes with Bitcoin

Canaan has launched a 3 MW pilot in Canada with Bitforest Investment using waste heat from liquid-cooled Bitcoin mining machines to supplement greenhouse heating for year-round tomato production.

• The project aims to recycle up to 90% of the electricity consumed by mining servers into a closed-loop heating system, potentially lowering costs and emissions compared with conventional data center cooling and fossil-fuel boilers.
• Canaan said the initiative will help it measure real-world performance metrics for agricultural heat recovery while advancing its broader push toward dual-purpose, energy-efficient mining infrastructure.

In the next 24 hours

• Eurozone CPI inflation figures are due at 5 a.m. ET on Wednesday. U.S. mortgage data follow at 7 a.m.
• U.S. FOMC member Michelle Bowman will speak at 4:10 p.m.
• IOTA and Axie Infinity are among the crypto projects set for token unlocks.

Never miss a beat with The Block’s daily digest of the most influential events happening across the digital asset ecosystem.

© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.