Hi guys, welcome to what happened in crypto yesterday, your daily catch-up of all the top stories in the cryptoverse and beyond. We saw institutional adoption accelerating, a high-profile crime conviction highlighting security risks, and emerging evidence of Bitcoin’s appeal in the AI era. Lets take a look.
Morgan Stanley Taps Coinbase and BNY for Bitcoin ETF Custody
Morgan Stanley advanced its push into spot Bitcoin ETFs by amending its SEC filing for the Morgan Stanley Bitcoin Trust. It has named Coinbase Custody and BNY Mellon as its primary custodial partners. Coinbase will be in charge of managing the digital asset safeguards and utilizing offline cold storage for the majority of the fund’s holdings. At the same time, BNY Mellon will take on a multifaceted role as the fund’s administrator, transfer agent, and cash custodian.
Analysts suggest that by selecting a crypto-native heavyweight alongside a 240-year-old banking institution, Morgan Stanley is prioritizing institutional-grade security to attract “wait-and-see” capital.
Ex-LAPD Officer Convicted in Shocking $350K Crypto Kidnapping Heist
In a violent 2024 home invasion case, Eric Halem, a former Los Angeles Police Department officer, was convicted of kidnapping and robbery on March 4th. The case pertains to a 17-year-old Bitcoin holder, who was robbed of ~ $350,000 in cryptocurrency. Halen posed as a police officer with accomplices, and used department-issued handcuffs and insider knowledge to gain entry to a Koreatown apartment. There, he restrained victims and forced a transfer from a crypto wallet.
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The case exposes rising physical threats to crypto owners, “wrench attacks,” and raises concerns about law enforcement vulnerabilities when officers exploit positions for crime.
Bitcoin Emerges as AI’s Preferred Currency of Choice
The Bitcoin Policy Institute in its recent study has revealed that autonomous AI agents have an overwhelming preference for Bitcoin as their primary “store of value.” After testing 36 frontier models from OpenAI, Google, and Anthropic, the research found that AI models selected Bitcoin in 48.3% of all cases. The survey covered over 9,000 economic scenarios. Bitcoin as the top choice in 48.3% of responses—outpacing stablecoins (33.2%) and crushing traditional fiat/bank money (8.9%). No model chose fiat as its main choice.
This suggests that AI agents prefer decentralized, digitally native assets for storing value in unstable or inflationary environments. This hints at Bitcoin’s possible role in future AI-driven economies and autonomous finance.
These stories show how crypto has shifted from gaining support among major institutions to facing ongoing real‑world threats, all while receiving forward‑looking validation from AI. The industry is still changing quickly, so staying alert and informed is essential.
