Nine years ago, a powerful bank CEO said that Bitcoin was a scam, and today his rival banks are competing to sell products based on the same asset. This isn’t just a shift in the market—it’s a complete shift in Wall Street’s mindset.

This week, three developments have happened at the same time that make this transformation clear. First, a major investment bank has filed an application for a Bitcoin Premium Income ETF. Second, Morgan Stanley launched a spot Bitcoin ETF that drew $3.4 billion on its first day. Third, the next Federal Reserve chair nominee appointed by Trump has listed investments in crypto projects in his financial disclosure.

But what matters here is what kind of products these banks are creating. Not simple spot ETFs—they’re making income-generating products using covered call strategies. That means they’re changing how Bitcoin is viewed—not merely an investment asset, but a way to generate income.

Morgan Stanley’s approach is even more aggressive. They have 16,000 financial advisors who manage $9.3 trillion. Previously, these advisors could only recommend third-party products; now they can sell their own. More importantly, they are advising clients to invest 2-4% of their portfolios in crypto.

Goldman Sachs’s shift is even more dramatic. In 2021, they restarted crypto trading. Now, their latest 13F filings show they hold Bitcoin ETF shares worth $15.7 billion, and they’re also buying Ethereum and Solana ETFs. They’ve taken only two years to buy others’ products, and then create and sell their own.

The most intriguing part is the 69-page financial disclosure of Trump’s Fed chair candidate. It includes investments in decentralized prediction market, Ethereum layer-2 network, Bitcoin Lightning Network startup, and other crypto infrastructure projects. The person who will control America’s monetary policy hasn’t just bought Bitcoin—he has invested in the most advanced infrastructure in the crypto ecosystem.

Wall Street has no faith—only ledgers. These institutions aren’t thinking about Bitcoin’s philosophy. They’re looking at trillions of dollars in annual trading volume, volatility of more than 60%, and an options market that’s maturing. They’re looking at management fees, trading commissions, and premiums on structured products.

What does this mean for small investors? In the short term, more competition means lower fees. In the medium term, Bitcoin is being redefined as an income-generating asset, which will attract pension and insurance funds. Once this money enters, most of it won’t go back out.

In the long term? When crypto is in the portfolio of the Fed chair, when Wall Street’s two most arrogant banks compete over Bitcoin products, there will be no need to answer the question of whether Bitcoin is a legal asset. The question becomes: on which side are you in this new arrangement?