Crypto Markets Dip as Morgan Stanley Files for ETFs

The cryptocurrency market experienced its first correction of 2026, with major digital assets trading in negative territory. Bitcoin (BTC) fell 2% to $92,000, marking a shift in momentum after a strong start to the year. Ethereum (ETH) and Solana (SOL) also recorded losses of 1%, trading at $3,210 and $138 respectively. However, XRP defied the broader trend, rising 5% to $2.24.

Amidst the market volatility, institutional activity remained robust. Morgan Stanley moved to expand its crypto offerings by filing for Exchange Traded Funds (ETFs) focused on Bitcoin, Ethereum, and Solana. On the regulatory front, the U.S. Senate Banking Committee has scheduled a pivotal vote on the crypto market-structure bill for next week, a development that could shape the industry's future. Other notable updates include record transaction volumes on the Ethereum network and significant movement in the NFT space following Nike's divestment of the RTFKT project.

The cryptocurrency market opened the week with a downturn, recording the first broad-based decline of 2026. After a period of sustained growth, profit-taking appears to have influenced trading sentiment. The total market capitalization saw a slight contraction as investors assessed the latest macroeconomic data and technical indicators.

Bitcoin led the decline, dropping 2% to settle at $92,000. This pullback interrupted a bullish streak that had seen the asset climb steadily since the start of the year. Ethereum, the second-largest cryptocurrency by market cap, followed suit with a 1% decrease, currently trading at $3,210.

Solana mirrored this performance, also shedding 1% to reach $138. The minor corrections suggest a period of consolidation following recent highs. However, the market was not uniformly bearish. XRP demonstrated resilience, registering a notable gain of 5% to trade at $2.24. This divergence highlights the varying dynamics within the crypto ecosystem, where specific asset narratives can drive performance independent of the broader market trend.

Institutional adoption of digital assets continues to accelerate despite market fluctuations. Morgan Stanley has taken a significant step forward by filing for Exchange Traded Funds (ETFs) tracking Bitcoin, Ethereum, and Solana. This move signals growing confidence in the long-term viability of digital assets as an investable class among traditional finance giants. If approved, these products would provide institutional and retail investors with regulated exposure to the top cryptocurrencies.

Simultaneously, regulatory clarity in the United States appears to be progressing. The U.S. Senate Banking Committee has officially scheduled a key vote on the crypto market-structure bill for next week. This legislation is viewed by many industry participants as essential for establishing a clear framework for digital assets, potentially paving the way for broader integration into the traditional financial system.

The underlying infrastructure of the crypto ecosystem is showing signs of intense activity. The Ethereum network specifically hit record daily transaction levels, processing over 2 million transactions in a single day. This surge in usage indicates high demand for block space and continued activity in decentralized finance (DeFi) and NFT sectors built on the network.

In the decentralized finance (DeFi) sector, Hyperliquid released a progress map, which has led to widespread speculation regarding a potential airdrop. Airdrops are a common method used by crypto projects to distribute tokens to early users or community members, often resulting in significant value generation for participants.

Meanwhile, the NFT market saw a dramatic shift following an announcement from Nike. The sportswear giant revealed it had sold off its RTFKT subsidiary. Following the news, the floor price of Clone X, a flagship NFT collection created by RTFKT, jumped by 250%, reflecting the market's reaction to the ownership change and future prospects of the collection.

Beyond the core crypto markets, significant capital movements were reported by major tech entities. Telegram, the messaging platform with deep ties to the TON (The Open Network) blockchain, shared details regarding its token holdings. The company disclosed that it sold $450 million of its TON tokens over the course of the last year. This divestment represents a substantial liquidity event for the company and provides insight into the treasury management strategies of major players in the crypto space.