Crypto Market Surge: $47B Inflows, Morgan Stanley's ETF Move, and Regulatory Progress

Source: CryptoValleyJournal Original Title: Weekly Review Calendar Week 02 – 2026 Original Link:

Crypto Investment Products Record $47.2 Billion in Inflows for 2025

Crypto investment products collected global net inflows of $47.2 billion in 2025 according to CoinShares’ annual report. While this falls slightly short of the previous year’s record of $48.7 billion, a significant shift in allocation patterns emerged. Bitcoin products recorded a 35% decline to $26.9 billion, while Ethereum dominated with inflows of $12.7 billion (up 138%). Solana and XRP posted even stronger gains at 1,000% and 500% respectively. The United States remained the dominant market with $42.5 billion in inflows. Germany reversed previous outflows with $2.5 billion in inflows, while Switzerland recorded $775 million.

Major US Bank Enters Crypto ETF Market

Morgan Stanley filed two S-1 registration applications with the SEC for proprietary Bitcoin and Solana ETFs, becoming the first major US bank to enter the crypto market as an ETF issuer. The Morgan Stanley Bitcoin Trust will hold cryptocurrency directly without derivatives or leverage, while the Solana Trust plans to stake a portion of its holdings. Previously, Morgan Stanley limited itself to distributing products from external providers. The bank manages $1.81 trillion in its investment management division. The US spot Bitcoin ETF market recently reached total assets of $123.5 billion.

Senate Banking Committee Schedules Vote on Crypto Regulation

The US Senate Banking Committee plans to vote next week on the Crypto Market Structure Bill. Committee Chairman Tim Scott intends to advance the draft despite unresolved disputes. The legislation aims to establish the first comprehensive regulatory framework for digital assets in the United States and clarify jurisdictions between the SEC and CFTC. Key contentious issues include ethics rules for politically exposed persons with crypto holdings, yield models for stablecoins, and regulation of decentralized finance protocols. A positive committee vote would advance the draft for full Senate consideration, though final passage requires additional procedural steps in the House of Representatives.

Wyoming Launches First State-Issued Stablecoin

Wyoming completed the operational launch of the Frontier Stable Token (FRNT), marking the first state-issued stablecoin in the United States. The fiat-backed token is fully collateralized by US dollars and short-term Treasury securities, with reserves managed by Franklin Templeton. FRNT runs natively on the Solana blockchain and is accessible on six additional networks via bridge solutions. Trading is available on the Kraken exchange. Interest earnings from reserves flow to the state for public purposes such as education. This positions Wyoming as a pioneer in government-issued digital payment instruments.

Swiss Crypto Tax Guidelines for 2025

Tax season 2025 brings updated guidance from the Swiss Federal Tax Administration. Bitcoin closed the year at CHF 69,571.99, while Ethereum closed at CHF 2,364.08. For Swiss private investors, the tax environment remains favorable with capital gains tax-free status provided investors are not classified as professional traders. Clear guidelines apply: minimum six-month holding period, no debt financing, and trading volume below five times the portfolio value at the start of the year. Those who stake or receive airdrops must declare these earnings as income. Cantonal wealth tax rates range between 0.3% and 1%, with Zug offering particularly favorable rates. The tax filing deadline is March 31, 2026.