Bitcoin rallies to three-week high as Morgan Stanley launches spot bitcoin ETF

Bitcoin climbed to a three-week high of $73,800 last week, before pulling back amid renewed geopolitical uncertainty, according to the latest market commentary from eToro.

Simon Peters, Crypto Analyst at eToro, noted that markets were initially supported by news of a temporary two-week ceasefire. However, sentiment weakened following the failure of the US and Iran to reach a broader agreement, alongside escalating tensions after the US Navy’s move to blockade Iran’s ports.

“Geopolitical developments have reintroduced caution into the market after a brief period of optimism,” said Peters.

Looking ahead, investor attention is turning to upcoming US Producer Price Index (PPI) data, with markets assessing whether rising oil prices are beginning to filter through supply chains.

“A stronger-than-expected PPI reading could reinforce expectations that the Federal Reserve may keep rates higher for longer, or even consider further tightening, which could weigh on risk assets including crypto in the near term,” Peters added. “Conversely, softer inflation data may support the disinflation narrative and help restore upward momentum in crypto markets.”

Bitcoin has faced resistance in the $74,000–$76,000 range since February, with upcoming macroeconomic data likely to play a key role in determining whether a breakout is possible.

Privacy coins outperform

Elsewhere in the crypto market, privacy-focused assets led gains for a second consecutive week. Zcash ($ZEC) and Dash ($DASH) rose 41% and 34% respectively, driven by increasing interest in privacy solutions.

Peters highlighted that a growing number of influential voices within the crypto space are advocating for enhanced privacy on blockchain networks, arguing that increasing transparency is pushing some investors towards privacy-focused alternatives.

Morgan Stanley launches spot bitcoin ETF

In a significant industry development, Morgan Stanley launched its spot bitcoin ETF last week, trading under the ticker MSBT. This marks the first spot bitcoin ETF issued by a major US investment bank.

The fund recorded a strong debut, attracting over $33.8 million in inflows on its first day, with more than 1.6 million shares traded. According to Morgan Stanley’s Head of Digital Asset Strategy, Amy Oldenburg, the ETF had “the best first day of trading for any of our ETFs since we’ve started the ETF product line.”

With a network of over 16,000 financial advisors overseeing approximately $6.2 trillion in client assets, the bank is well-positioned to drive significant inflows into the product.

Bloomberg ETF analyst Eric Balchunas estimates the fund could reach $5 billion in assets under management within its first year, potentially placing it among the top five spot bitcoin ETFs globally.

Morgan Stanley has also filed for spot ether and spot solana ETFs, which could launch later this year.