Both Morgan Stanley’s launch of MSBT and Goldman Sachs’ unveiling of its ETF plans come against a difficult environment for cryptocurrency investments. The digital currency’s value has dropped in recent months due to weakening risk sentiment, driven by factors like volatility in precious metals, a broad selloff in tech shares, and the ongoing Middle East conflict.

Also, Goldman Sachs’ upcoming Bitcoin ETF will offer exposure to the currency’s price and enable users to generate income from Bitcoin options transactions.

Bitcoin, the world’s largest cryptocurrency, has seen its price tumble nearly 15% so far in 2026 to USD 74,591. It is currently trading 40% below its all-time high of USD 126,223 reached in October 2025.

While assets under management (AUM) for cryptocurrency ETFs have continued to grow, the journey has been full of headwinds. In fact, both the Grayscale Bitcoin Covered Call ETF (BTCC.P) and the Global X Bitcoin Covered Call ETF (BCCC.Z) recorded net outflows since the beginning of 2026.

Goldman Sachs’ upcoming ETF will be the first filed by the Wall Street giant since completing its USD 2 billion acquisition of ETF provider Innovator Capital Management earlier ⁠this month.

Innovator’s takeover was a strategic victory for Goldman Sachs, as the company pioneered developing ETFs using options to determine outcomes or generate income.

As per the data of asset manager CoinShares, the debut of Morgan Stanley’s MSBT also came amid the strongest week for crypto investment products in three months, as crypto funds globally attracted USD 1.1 billion in net inflows till April 11.

The turnaround followed five straight weeks of outflows that drained roughly USD 4 billion from the market and left investor sentiment battered heading into April. CoinShares head of research James Butterfill, while interacting with NEWSBTC, cited early ceasefire signals from the Iran theatre and a softer-than-expected US inflation reading, behind the crypto investment rally.

However, due to the Iran conflict and ceasefire, the first round of talks between Washington and Tehran failed to come up with a fruitful solution, and another round is expected to be held shortly.

The post Goldman eyes crypto ETF launch as rival Morgan Stanley takes early lead appeared first on International Finance.