Kalam Crypto #174: Institutions Double Down, Regulation Momentum Builds

Every week adds another layer to the same story: crypto is no longer operating at the edges of finance.

19 May, 2026

CoinMENA Team

Author

“Markets are a device for transferring money from the impatient to the patient.” - Warren Buffett

Ahlan wa sahlan! Welcome to the latest edition of Kalam Crypto, your weekly lens on the evolving digital asset landscape across global markets and the MENA region.

Every week adds another layer to the same story: crypto is no longer operating at the edges of finance; it is steadily being absorbed into its core structure. Institutional participation continues to expand, regulatory frameworks are catching up with innovation, and market behaviour is becoming increasingly shaped by macro forces rather than isolated narratives.

Let’s dive into this week’s edition 👇

🌍 Global Market Pulse

Italy’s Biggest Bank Expands Crypto Exposure

Intesa Sanpaolo more than doubled its crypto exposure in Q1 2026, growing holdings from $100 million to $235 million. The bank expanded its Bitcoin ETF positions, entered Ethereum and XRP for the first time, and nearly exited its Solana holdings. The move highlights growing institutional confidence in digital assets as more European banks continue expanding crypto services and infrastructure.

Saylor Signals Bitcoin Sales Could Be Possible

Michael Saylor said Strategy may consider selling Bitcoin if needed to protect the company’s financial flexibility and strengthen confidence in its balance sheet. While Saylor remains one of Bitcoin’s strongest long-term advocates, he explained that signaling a willingness to use the firm’s $65 billion Bitcoin holdings could help preserve the asset’s credibility with credit markets and investors.

Bitcoin ETFs See First May Outflows

Bitcoin ETFs recorded $277.5 million in outflows, ending a five-day inflow streak worth nearly $1.7 billion as Bitcoin briefly dropped below $80,000 amid rising market volatility. Major funds from BlackRock and Fidelity Investments led the withdrawals, while Morgan Stanley’s recently launched Bitcoin ETF continued attracting inflows, signaling that institutional demand remains active despite short-term market pressure.

Japan’s Financial Giants Prepare Crypto Investment Funds

Major Japanese brokerages, including SBI Securities, Rakuten Securities, and Nomura Holdings, are preparing to launch crypto investment trusts as Japan moves toward allowing crypto-holding funds by 2028. The new products would give retail investors easier access to assets like Bitcoin and Ethereum directly through traditional brokerage accounts, signaling deeper integration of crypto into Japan’s mainstream financial system.

ICE and CME Push Back on Hyperliquid Expansion

Intercontinental Exchange and CME Group are urging US regulators to tighten oversight on decentralized exchange Hyperliquid, warning that its expansion into energy-linked derivatives could expose commodity markets to manipulation and sanctions-related risks. The concerns come as Hyperliquid’s on-chain perpetual markets grow rapidly, highlighting rising tension between traditional and decentralized trading platforms moving deeper into real-world asset markets.

Goldman Sachs Cuts XRP and Solana ETF Exposure

Goldman Sachs reduced its crypto ETF exposure in Q1 2026, fully exiting XRP- and Solana-linked funds while trimming positions in major Bitcoin and Ethereum ETFs. Despite the pullback, the bank still holds more than $700 million in Bitcoin ETFs and increased investments in crypto-related companies such as Coinbase and Circle Internet Group, signaling continued institutional interest in the digital asset sector.

Keep an eye on 👀

CLARITY Act Fuels Bitcoin Optimism

Momentum behind the US CLARITY Act is boosting sentiment across the crypto market, with Santiment reporting a sharp rise in bullish discussions around Bitcoin after the bill advanced through the Senate Banking Committee. While analysts believe clearer US crypto regulations could attract more institutional capital into the market, Santiment warned that extreme optimism often signals short-term caution as markets tend to move against crowd expectations.

US Crypto Adoption Hits Highest Level Since 2022

A new report from the Federal Reserve found that 10% of US adults used or invested in crypto in 2025, marking the highest adoption level since 2022. While most users still view crypto primarily as an investment, payment usage is also growing, with many citing faster transactions, lower costs, and greater privacy as key advantages over traditional financial systems.

Breakdown of crypto usage, including investment and payments, among Americans between 2021 and 2025. Source: Federal Reserve

CoinMENA News 🗞️ Talal Tabbaa Named a Top 20 CEO

For the second consecutive year, Co-Founder and CEO of CoinMENA, Talal Tabbaa has been named among the Top 20 Performing CEOs by Unlock Blockchain, recognizing his sustained leadership and vision for the regional digital asset space. His work continues to drive CoinMENA forward, strengthening regulated infrastructure that bridges traditional finance with the digital economy.