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21 Bits Newsletter - March 2026
The ongoing conflict involving Iran, highlights how crypto assets like Bitcoin can serve as a hedge during geopolitical uncertainty as it operates independently of traditional financial systems.
TL;DR
- Key resistance broken: Bitcoin breaks above key resistance at $71,300.
- Increasing institutional allocation: Goldman Sachs shows $2.36B crypto exposure.
- Banks warming to Bitcoin - Emirates NBD calls it “digital gold”; major firms like Fidelity, BofA, and Morgan Stanley recommend 1–5% portfolio allocations for diversification.
- Bitcoin as geopolitical hedge - Amid tensions, Bitcoin’s decentralized, 24/7 nature draws attention for capital preservation and movement outside traditional systems, reinforcing its maturing role beyond retail speculation.
THOUGHTS
Bitcoin is currently trading near 71,800. The list of Bitcoin and crypto obituaries remains lengthy, and doomers, emerging from a three-year hibernation, are once again proclaiming its demise. We believe a reality check is in order.
In its latest filing, Goldman Sachs disclosed approximately $2.36 billion in crypto exposure (all through ETFs, with no direct token holdings):
- $1.1 billion in Bitcoin
- $1.0 billion in Ethereum
- $153 million in XRP
- $108 million in Solana
Practically, the largest constituents of the Bloomberg Galaxy Crypto Index.
UAE’s second-largest bank, Emirates NBD (with $662 billion in AUM), recently described Bitcoin as “digital gold” and is actively exploring its inclusion in investment portfolios. Meanwhile, Jane Street has dramatically increased its MicroStrategy (MSTR) position to 951,000 shares—valued at around $121 million—representing a 473% surge in holdings.
Do these moves suggest concern over recent price action? Hardly.
The very institutions that once penned skeptical obituaries have now embraced crypto.
Crypto is steadily transferring from retail to institutional hands — players with unparalleled expertise in money and markets.
Meanwhile, the ongoing conflict involving Iran, highlights how crypto assets like Bitcoin can serve as a practical hedge during periods of geopolitical uncertainty. In times of escalating tensions investors often seek assets that operate independently of traditional financial systems. Bitcoin, with its decentralized nature and availability for trading around the clock, has drawn attention as a potential “flight to safety” option for some participants, allowing quick and easy capital movement and preservation amid restricted conventional channels.
So, step back, see the full landscape, and let’s move forward into this next phase with clear-eyed confidence and real conviction.
TOP STORIES
Major financial firms like Fidelity, Bank of America, and Morgan Stanley recommend allocating roughly 1–5% of portfolios to Bitcoin.
Major U.S. financial firms like Fidelity, Bank of America, and Morgan Stanley are now recommending small allocations of roughly 1–5% to Bitcoin in client portfolios, signaling mainstream acceptance of crypto as a diversification tool. Fidelity advises 2–5% (or up to 7.5% for younger investors in optimistic scenarios), Bank of America suggests 1–4% for suitable clients comfortable with volatility, and Morgan Stanley recommends up to 4% (typically 0–2% for moderate risk profiles and 0–4% for more aggressive ones), often via regulated Bitcoin ETFs.
UAE's second largest bank, Emirates NBD, says Bitcoin is "digital gold."
Emirates NBD, the UAE’s second-largest bank (with about $272 billion in assets), has described Bitcoin as “digital gold” in a recent CNBC interview. Group CIO Maurice Gravier highlighted its limited supply, strong security via proof-of-work, and low-inflation traits, viewing it as a store of value rather than just speculation. The bank is exploring a small allocation (0.5%–1%) to Bitcoin in balanced portfolios and has already enabled it in internal processes, though no direct purchases have occurred yet. This reflects growing institutional acceptance of crypto in the region.
Denmark’s largest bank, Danske Bank, will offer Bitcoin and crypto ETPs to investors.
Danske Bank, Denmark’s largest bank, has started offering Bitcoin and Ethereum exchange-traded products (ETPs) to its customers via its online and mobile banking platforms. This ends an eight-year restriction on crypto-related services, driven by growing client demand and clearer EU regulations. Customers gain exposure to the two leading cryptocurrencies through regulated ETPs (including those from BlackRock and WisdomTree) without needing digital wallets or directly holding the assets. The rollout began in February 2026.
Goldman Sachs discloses $2.4B worth of crypto holdings.
Goldman Sachs disclosed around $2.36 billion in cryptocurrency exposure in its latest Q4 2025 13F filing with the SEC (released in February 2026). This is held entirely through spot crypto ETFs—not direct tokens—and includes roughly $1.1 billion in Bitcoin ETFs, $1 billion in Ethereum ETFs, $153 million in XRP, and $108 million in Solana. This shows growing but still cautious institutional interest in crypto amid market fluctuations.
Binance partners with Franklin Templeton to let institutional clients use tokenized money market fund shares as off-exchange collateral.
Binance has partnered with Franklin Templeton to let big institutional clients use tokenized shares of Franklin Templeton’s money market funds as collateral for trading on Binance, without sending the actual assets to the exchange. The tokenized shares stay safely held in regulated custody (via Ceffu), while only their value is used on the platform. This makes trading more secure, efficient, and connects traditional finance with crypto. The service launched in February 2026.
BITCOIN ANALYSIS
Bitcoin recently traded in a sideways range between $61,000 and $71,000 for some time, showing no clear upward or downward direction. It has now broken out above the key resistance level at around $71,300, which signals potential bullish momentum. The current price sits near $71,800, and the next significant resistances are in the $76,900 to $78,700 area.
CRYPTO MARKET PERFORMANCE
FEBRUARY 2026
PRODUCT PERFORMANCE
FEBRUARY 2026
February 2026 saw a broad market correction across crypto assets.
• Bitcoin Product: Down 23.09%, reflecting the sharper drawdown in Bitcoin during the month.
• Crypto & Gold Product: Down 15.18%, with the gold allocation helping moderate overall volatility. The blended structure continued to provide some cushioning relative to pure crypto exposure during the market downturn.
• Crypto Index Product: Down 15.11%, reflecting sell-offs across the broader crypto market.
BLOOMBERG GALAXY CRYPTO INDEX (BGCI)
MARCH 2026
BITSAVE HIGHLIGHTS
Cyber Security Audit mandated FIU-IND completed from Grant Thornton.
