Financial services giant Morgan Stanley is reportedly exploring the possibility of offering spot bitcoin exchange-traded funds (ETFs) on its brokerage platform.

Cryptocurrency exchange Gemini has reached a settlement with the New York State Department of Financial Services (NYDFS) where it will return at least $1.1 billion to customers who participated in its Earn program through the bankruptcy proceedings of crypto lender Genesis Global Capital.

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw their trading volumes surge on Wednesday as the price of Bitcoin moved to surpass the $64,000 mark before correcting, in a trading session with over $7.7 billion in volume.

Top stories in the Crypto Roundup today:

• Morgan Stanley Eyes Bitcoin ETFs for Its Brokerage Platform
• Gemini to Return $1.1 Billion to Earn Users After NYDFS Settlement
• Bitcoin ETFs Smash Volume Record, Surpassing $7.7 Billion in a Day

Morgan Stanley Eyes Bitcoin ETFs for Its Brokerage Platform

Financial services giant Morgan Stanley is reportedly exploring the possibility of offering spot bitcoin exchange-traded funds (ETFs) on its brokerage platform.

While billions of dollars have already flowed into these new investment vehicles since the U.S. Securities and Exchange Commission approved them, industry observers believe a wider adoption could occur with the participation of registered investment advisor networks and broker-dealer platforms like those offered by Morgan Stanley.

It remains unclear which specific ETFs Morgan Stanley might choose to offer. In 2021, the Wall Street giant became the first major U.S. bank to provide its wealthy clients with access to Bitcoin through a pair of external funds.

These funds, reportedly offered by Galaxy Digital and NYDIG, allowed qualified investors to gain exposure to the digital asset class.

Gemini to Return $1.1 Billion to Earn Users After NYDFS Settlement

Cryptocurrency exchange Gemini has reached a settlement with the New York State Department of Financial Services (NYDFS), where it will return at least $1.1 billion to customers who participated in its Earn program through the bankruptcy proceedings of crypto lender Genesis Global Capital.

The settlement will also see Gemini pay a $37 million penalty over compliance failures identified by the NYDFS "that threatened the safety and soundness of the company," according to Superintendent Adrienne A. Harris.

If approved, Gemini said it expects Earn users to receive their cryptocurrency assets back in kind, plus accrued appreciation. This would translate to over $1.8 billion at current prices, or $700 million more than when Genesis halted withdrawals in November 2022.

The exchange also claims that approximately 97% of these assets are expected to be recovered within two months. As part of the settlement, Gemini has agreed to contribute $40 million to the GGC bankruptcy proceedings specifically for the benefit of Earn users.

According to Superintendent Harris, the NYDFS retains the right to take further action against Gemini if it fails to fulfill its obligations under the agreement.

Bitcoin ETFs Smash Volume Record, Surpassing $7.7 Billion in a Day

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw their trading volumes surge on Wednesday as the price of Bitcoin moved to surpass the $64,000 mark before correcting, in a trading session with over $7.7 billion in volume.

BlackRock’s IBIT spot Bitcoin ETF shattered its own record for the third consecutive day, with over 96 million shares - valued at roughly $3.3 billion - changing hands. This surpassed Tuesday's all-time high of $1.35 billion, which itself had eclipsed Monday's record.

The combined trading volume of the ten recently launched spot Bitcoin ETFs reached $7.7 billion, demolishing the previous record of $4.7 billion set on their debut in January.

Both Grayscale's Bitcoin Investment Trust (GBTC) and Fidelity's Wise Origin Bitcoin Trust (FBTC) surpassed the $1 billion mark in individual volume amid the trading frenzy.

The frenzy reached a point where IBIT briefly became the fourth most traded ETF in the U.S. during the day, with three other spot Bitcoin ETFs making it into the top 20, according to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.

Market analysts attribute a significant portion of Bitcoin’s price surge to demand for the newly launched spot Bitcoin ETFs. Since their launch in January, the ten ETFs have collectively attracted over $6.7 billion in net inflows.

State of the Crypto by Top Tier Exchange Volume

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