Morgan Stanley’s Bitcoin ETF Plans Raise Market Manipulation Concerns Among Analysts

Morgan Stanley's filing for a Bitcoin and Solana ETF, alongside MSCI's decision to retain digital asset companies in its index, has stirred speculation of potential market manipulation.

Key Events and Implications

Bull Theory analysts suggest the timeline from Bitcoin's October decline to January recovery could indicate orchestrated market movements.
On October 10, MSCI proposed removing Digital Asset Treasury Companies (DATCOs) from global indexes, threatening firms with substantial Bitcoin holdings.
This proposal risked forcing institutional investors to divest, reducing liquidity and causing a significant price drop. Bitcoin fell nearly $18,000, impacting over $900 billion of the crypto market cap.
The consultation period for MSCI's decision lasted until December 31, creating prolonged uncertainty and further market declines.
Bitcoin dropped about 31%, with altcoins suffering more during this period, marking the worst quarter since 2018.

Market Dynamics Shift

On January 1, Bitcoin unexpectedly surged by 8% within five days, raising questions about insider knowledge.
On January 5 and 6, Morgan Stanley announced plans for spot ETFs on Bitcoin, Ethereum, and Solana.
MSCI decided not to exclude crypto-heavy companies, reversing previous pressure.

The sequence suggests possible coordinated efforts to manipulate market conditions. As liquidity returns, those potentially orchestrating the downturn might now profit from the rebound.

Bitcoin

Currently, BTC trades at $91,550, down 2% from a recent high of $95,000.