VanEck 2026 Q1 Outlook: Risk-On Markets Put Bitcoin and Crypto Back in Focus

Bitcoin ETFs have outpaced gold's early adoption by 600%, according to Bitwise, with inflows into spot bitcoin ETFs reaching $57 billion in two years. Gold's early ETF era saw $8 billion in inflows from 2004–2006. The shift to digital assets is supported by ETF structures that allow institutional investors to integrate bitcoin into mainstream portfolio construction as reported.

Institutional adoption of Bitcoin has continued to accelerate, with Morgan Stanley joining BlackRock and Fidelity in the $123 billion Bitcoin ETF market according to reports. The firm's filing signals a growing trend of Wall Street banks embedding crypto into wealth management and institutional portfolios. This shift is driven by competitive pressure, as peers expand digital asset desks and offerings to remain relevant as industry analysis shows.

Ethereum's Fusaka upgrade completed its final phase with the Blob Parameters Only (BPO-2) fork according to The Block. This upgrade increases the network's data availability, which supports lower transaction costs for Layer 2 solutions. The update was part of a broader effort to scale Ethereum's infrastructure while maintaining security and decentralization as detailed by Coinrise.

Why Is Institutional Adoption of Bitcoin So Fast?

Bitcoin's rapid adoption by institutional investors is attributed to its ETF structures and regulatory clarity according to data. ETFs provide a familiar and compliant way for asset managers to allocate capital to digital assets. Additionally, the Federal Reserve's recent rate cuts and a resilient economy have increased demand for risk-on assets as market analysis indicates.

Morgan Stanley's entry into the Bitcoin ETF market highlights how major institutions are integrating crypto into core portfolio strategies according to financial reports. This move reflects the competitive pressure among banks to offer digital asset products. With more Wall Street firms entering the space, the institutional crypto market is expected to grow significantly in 2026 as industry observers predict.

What Implications Does the Fusaka Upgrade Have for Ethereum?

The Fusaka upgrade expands Ethereum's data capacity, allowing for more efficient and cost-effective transactions on Layer 2 networks as reported by The Block. By increasing the number of blobs per block, the upgrade reduces data costs and supports the growth of decentralized applications. This improvement helps maintain Ethereum's position as a scalable settlement layer according to analysis.

Ethereum's incremental approach to upgrades allows developers to test and implement changes without disrupting the network as explained by Coinrise. This strategy supports long-term scalability and reduces the risk of large-scale disruptions. As a result, Ethereum continues to enhance its infrastructure while maintaining stability as industry sources note.

How Is Thailand Addressing Crypto and Gold as 'Gray Money'?

Thailand has launched a campaign to tighten oversight of both gold and crypto markets to combat money laundering according to Cointelegraph. The initiative includes lower reporting thresholds for physical gold purchases and stricter enforcement of the Travel Rule for digital assets. These measures aim to close loopholes used by criminal networks to move value outside the banking system as regulatory analysis shows.

The country's approach reflects a broader regulatory shift, treating digital assets as part of a unified financial enforcement model as reported. By framing crypto and gold as parallel channels, Thailand is signaling that digital assets are no longer considered a regulatory outlier. The government plans to establish a national data hub for real-time monitoring of suspicious activity according to industry sources.

What Are Analysts Watching for in the Coming Weeks?

Analysts are monitoring ETF inflows and regulatory developments as key indicators of market sentiment according to market reports. BlackRock's IBIT ETF continues to attract significant inflows, while the SEC's decision on new ETF proposals remains under review. The approval of multi-asset crypto options could further expand the derivatives market as analysts suggest.

The Federal Reserve's upcoming policy decisions and potential rate cuts are also being closely watched as economic analysis indicates. A favorable economic outlook and lower interest rates could further support risk-on assets, including Bitcoin and Ethereum. Institutional investors are expected to remain active in the space as long-term positioning becomes a strategic priority according to financial reports.