21 Bits Newsletter - May 2026

TL;DR

• The U.S.-Iran ceasefire sparked a risk-on rally, pushing Bitcoin to an 11-week high above $79,000 with spot ETFs recording their largest monthly inflows since October 2025.
• A Senate compromise on stablecoin yield has cleared the path for the Digital Asset Market Clarity Act, bringing the U.S. closer to a statutory crypto regulatory framework.
• Visa expanded stablecoin settlement to nine blockchains, and Charles Schwab launched direct Bitcoin and Ethereum trading for retail customers.
• Morgan Stanley’s spot Bitcoin ETF raised over $100 million in its debut week at a 0.14% expense ratio, its most successful ETF launch to date.
• All three BitSave products posted strong April gains, led by the Bitcoin Product (+14.47%), followed by Crypto & Gold Product (+8.32%) and the Crypto Index Product (+7.30%).
• Bitcoin has broken above $78,700, now expected to hold as support, with the next major resistance at $86,600.

THOUGHTS

The U.S.-Iran ceasefire, announced in early April, triggered a broad risk-on rally that has gathered momentum across financial markets over the past month. The S&P 500 gained roughly 8% through late April, buoyed by AI-driven earnings optimism and easing geopolitical tensions, while the Nasdaq posted one of its longest winning streaks in decades. Expectations of Federal Reserve rate cuts and fiscal stimulus from the pending “One Big Beautiful Bill” added further support, and crude oil , which had surged during the height of the conflict, pulled back sharply as supply disruption fears receded, easing pressure on inflation expectations.

Bitcoin’s recovery has been equally striking. The largest crypto asset surged 5% in the days immediately following the ceasefire, briefly touching $72,841 — its highest level in weeks before extending gains further as diplomacy held. When Trump extended the truce indefinitely on April 21, Bitcoin broke past $79,000, hitting an 11-week high. Institutional demand reinforced the move: spot Bitcoin ETFs recorded approximately $1.7 billion in net inflows in April, the largest monthly total since October 2025, while Strategy added 34,164 BTC in a single week for roughly $2.54 billion, its third-largest weekly purchase on record.

The broader picture for Bitcoin looks increasingly constructive. Institutional infrastructure has deepened meaningfully. ETF inflows are back in positive territory, corporate treasuries continue to accumulate, and regulatory momentum in the U.S. remains favorable heading into the second half of the year. Bitcoin’s climb from its February low near $60,000 to above $79,000 in under three months signals genuine demand recovery, not just a relief bounce. With geopolitical tensions easing and macro conditions slowly turning more accommodative, Bitcoin appears well-positioned to build on these gains as 2026 progresses.

TOP STORIES

Morgan Stanley’s Bitcoin ETF Crosses $100M in Its First Week

Morgan Stanley’s spot Bitcoin ETF, trading under the ticker MSBT, pulled in over $100 million in its debut week, the firm’s most successful ETF launch to date. Priced at a 0.14% expense ratio, MSBT is currently the cheapest spot Bitcoin ETF on the market, giving it a competitive edge as it taps into Morgan Stanley’s vast wealth management network. The milestone underscores how deeply Bitcoin has embedded itself in mainstream institutional finance and signals that demand for regulated crypto exposure through trusted Wall Street names remains strong heading into the second half of 2026.

Charles Schwab to Launch Direct Bitcoin and Ethereum Trading

Charles Schwab is set to launch direct Bitcoin and Ethereum trading, putting the brokerage giant in direct competition with Robinhood in the retail crypto space. The move allows Schwab’s millions of existing customers to trade cryptocurrencies natively within their brokerage accounts, without needing a separate crypto exchange. It marks a significant shift for one of traditional finance’s most established names and further blurs the line between conventional investing platforms and the crypto-native world.

Visa Expands Stablecoin Settlement to Nine Blockchains

Visa has added five new blockchains to its global stablecoin settlement pilot, bringing its total network support to nine chains. The payments giant added support for Stripe’s Tempo, Circle’s Arc, Coinbase’s Base, Polygon, and Canton Network, building on existing support for Ethereum, Solana, Avalanche, and Stellar. The expansion gives issuers and acquirers more flexibility to settle on networks that best fit their operational needs. The pilot has now reached a $7 billion annualized settlement run rate, up 50% from the prior quarter, a sign that stablecoin-based settlement is moving well beyond pilot territory and into mainstream payment infrastructure.

Meta Launches USDC Stablecoin Payouts for Creators

Meta has begun paying select content creators in USDC, quietly rolling out stablecoin payouts for creators in Colombia and the Philippines, available on the Solana and Polygon blockchain networks. Rather than building its own token, Meta is tapping Circle's USDC, the second-largest stablecoin with a market cap of over $77 billion, with Stripe handling the technical infrastructure. The move marks a notable return to crypto for a company that shut down its Libra project in 2022 after regulatory pushback and this time, with a more pragmatic approach: no proprietary coin, no fanfare, just blockchain rails quietly replacing expensive cross-border banking. The program is expected to expand to more than 160 countries by the end of the year.

US Lawmakers Reach Deal on Stablecoin Yield, Clearing Path for Crypto Market Structure Bill

US senators have finalized a long-awaited compromise on stablecoin yield, removing one of the biggest obstacles to passing the Digital Asset Market Clarity Act. The agreement, struck by Senators Thom Tillis and Angela Alsobrooks, bars crypto firms from paying interest or yield solely for holding stablecoins, while preserving activity-based rewards tied to genuine platform usage. The deal ends a months-long standoff between the banking lobby and the crypto industry, and clears the path for a long-stalled Senate Banking Committee markup, a critical next step, before the bill can advance toward a full Senate vote.

BITCOIN ANALYSIS

Bitcoin has broken above the $78,700 resistance level, which is now expected to act as support on any pullback. The next major resistance to watch stands at $86,600.

CRYPTO MARKET PERFORMANCE

APRIL 2026

PRODUCT PERFORMANCE

APRIL 2026

April 2026 delivered a strong broad-based rally across crypto assets, with Bitcoin leading a sustained upward trend through the majority of the month before a mild pullback near month-end.

• Bitcoin Product: Up 14.47%, benefiting from Bitcoin’s spot gain as momentum built steadily from mid-month onward. The product captured the bulk of the rally, with only a modest retreat in the final days.
• Crypto & Gold Product: Up 8.32%, reflecting solid participation in the crypto recovery delivered a strong result as the crypto component dominated performance.
• Crypto Index Product: Up 7.30% as the broader altcoin basket produced mixed results. While Ethereum (+7.22%), Chainlink (+3.76%), and Cardano (+1.86%) contributed positively, notable drags from Bitcoin Cash (−5.49%), Stellar (−5.32%), and a near-flat Solana (−0.12%) pulled the index below Bitcoin’s headline return.

BLOOMBERG GALAXY CRYPTO INDEX (BGCI)

MAY 2026

WATCH RECOMMENDATIONS