Leak Reveals Crypto Braced for Massive Earthquake BlackRock, Wall Street ETFs After Bitcoin Price Drops $60K

Bitcoin
Bitcoin
has surged again this year, finding itself back in the spotlight thanks to its much-anticipated adoption on Wall Street and Donald Trump’s preparations for a bitcoin bombshell.

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Bitcoin hit its highest level of 2021 in March but has been falling since then, falling below $60,000 per bitcoin on Saturday, amid fears of a massive stock market crash and a devastating U.S. recession. The FBI has issued a stark warning about cryptocurrencies.

Now, after Shark Tank billionaire Mark Cuban made a “crazy” bitcoin price prediction, a leak has revealed that Wall Street giant Morgan Stanley is preparing to cause an earthquake in the bitcoin ETF market.

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BlackRock and its Cryptocurrency Conversion Chief Executive Larry Fink are largely behind the price of bitcoin … (+) This year will see a rebound — and another earthquake is just around the corner after the price of bitcoin fell by $60,000.

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Morgan Stanley will this week allow its team of 15,000 financial advisors to offer spot bitcoin-based ETFs to some clients, the outlet reported. CNBCciting a leak from two anonymous sources.

However, Morgan Stanley imposes limits of $1.5 million in net worth, a stated willingness to make speculative investments, and an aggressive risk tolerance on who its Bitcoin ETFs can target, CNBC‘s sources said. They will also only offer the two largest new spot bitcoin ETFs from BlackRock and Fidelity.

Despite the huge success of bitcoin ETFs that debuted on Wall Street in January, banks like Goldman Sachs, JPMorgan, Bank of America and Wells Fargo have held off on offering them to clients.

Earlier this year, unconfirmed reports suggested that Morgan Stanley wanted to “be the first brokerage to fully approve bitcoin ETFs,” while the chief investment officer at bitcoin ETF issuer Bitwise predicted that brokerages opening up ETFs to retail investors, hedge funds, and independent financial advisors would send an “even bigger” shockwave through bitcoin’s price than the ETF approvals in January.

A dozen spot bitcoin ETFs have soared to $57.2 billion in total net assets since their launch in January, according to SoSoValue data, from $17.5 billion in net inflows. BlackRock’s IBIT fund has now surpassed $21.5 billion in net assets, making it one of the fastest-growing Wall Street ETFs of all time.

BlackRock CEO Larry Fink admitted last month that he was wrong about bitcoin and called it a “legitimate” financial instrument after calling bitcoin a “money laundering indicator” in 2017.

Forbes‘This is huge’ – billionaire Mark Cuban offers ‘amazing’ prediction for bitcoin and cryptocurrencies amid price crashBy Billy Bambrough

The rise in bitcoin prices this year has been fueled by huge interest in the fleet of new spot bitcoins … (+) ETFs, led by BlackRock’s IBIT spot bitcoin ETF.

Forbes Digital Assets

Currently, market investors are struggling with low market liquidity, and the bitcoin price is struggling to maintain the momentum it developed in the first half of 2024.

“We are seeing a lack of liquidity across many assets, and ‘summer’ may be one reason for that,” Jag Kooner, head of derivatives at bitcoin and cryptocurrency exchange Bitfinex, said in emailed comments.

“We are currently seeing significant buy walls forming at the lows of several altcoins and we also expect Bitcoin to trade between $61,000 and $70,000, providing an accumulation zone.”