Deng Tong, Jinse Finance
On January 6, 2026, US investment bank Morgan Stanley filed an application with the US Securities and Exchange Commission (SEC) to launch two cryptocurrency exchange-traded funds (ETFs), one linked to Bitcoin and the other to Solana. Wall Street firms are further expanding into the regulated digital asset product space.
What is Morgan Stanley's intention behind this move? What are the industry's opinions? What impact will it have? What other moves will Morgan Stanley make in the crypto space?
Morgan Stanley, the sixth largest bank in the US, has filed registration statements with the SEC for the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust. This move places Morgan Stanley among the asset management companies that have dominated the Bitcoin ETF market since regulators approved the first US spot products in early 2024.
According to filings, the bank is seeking to launch ETFs linked to the prices of cryptocurrencies such as Bitcoin and Solana, aiming to deepen its position in the cryptocurrency space. The trust will act as a “passive investment” vehicle, holding and tracking the performance of the underlying tokens. According to the registration statement, if approved, the fund will hold Bitcoin directly, rather than relying on futures, derivatives, or leverage. Both funds seek listing on public exchanges, typically specified in a later 19b-4 filing rather than in the initial S-1 form. According to Morgan Stanley’s letter to shareholders, if approved, these funds could bring new inflows into Bitcoin and Solana from the more than 19 million clients served by Morgan Stanley Wealth Management as of April 2025. Neither fund will seek returns other than tracking the price of the underlying assets, meaning the sponsor will not “speculatively sell” the spot tokens.
Bloomberg Industry Research analyst James Seifert said, "To be honest, I'm very surprised by this. I never expected this. I've thought for years that most of these companies would change their attitude towards cryptocurrencies."
Bloomberg Senior ETF Analyst Eric Balchunas called the move "wise" and said Morgan Stanley could use the funds to launch its BYOA (Borrowed Assets) ETF Strategy – This strategy refers to large asset management firms investing client funds in their own proprietary products instead of competing funds. Balchunas noted, “This could prompt several other companies to launch their own branded Bitcoin ETFs; we’ll see.” Bitwise advisor Jeff Park wrote on the X platform: “Morgan Stanley’s launch of a Bitcoin ETF is a very strong bullish signal for the following reasons: 1) It means the market size is much larger than crypto industry professionals previously expected, especially in terms of reaching new clients. 2) It demonstrates that Bitcoin’s importance at the social level is no less than its importance at the financial level. 3) Essentially, this is a defensive move to address the risks of platform disintermediation and fee outflows.” NovaDius Wealth President Nate Geraci pointed out: “Now they’ve launched their own cryptocurrency ETF. Given Morgan Stanley’s vast distribution network, this makes sense. Clearly, they see huge customer demand for cryptocurrency ETFs.” Morningstar ETF analyst Brian Amor stated: “It’s interesting to see Morgan Stanley entering the commodity market. I suspect it means they want to move customers who invest in Bitcoin into their ETF, which could allow them to get started quickly despite being a latecomer. Banks entering the cryptocurrency ETF market will enhance the legitimacy of that market, and other banks may follow suit.” III. The Impact of Morgan Stanley’s ETF Launch 1. A Major US Bank Takes the First Step Exchange-traded funds (ETFs) are baskets of assets that trade on stock exchanges like stocks, allowing investors to easily invest in indices, sectors, or commodities without direct ownership. Many investors prefer to invest in cryptocurrencies through ETFs because they are inexpensive and convenient. Furthermore, ETFs offer higher liquidity while avoiding the regulatory and logistical complexities of directly holding and holding the underlying assets. In the two years since the U.S. Securities and Exchange Commission approved the first Bitcoin ETF listed in the U.S., these products have primarily been launched by asset management companies, not banks. Morgan Stanley's move into cryptocurrency ETFs indicates that major U.S. banks are no longer standing idly by. This is also the first time that one of the top ten U.S. banks (by total assets) has officially launched a cryptocurrency ETF. Previously, U.S. banks were merely custodians of client funds, but now, with changing regulatory policies, they appear ready and eager to transform into cryptocurrency service providers by 2026. On December 8, 2025, Jonathan Gould, Comptroller of the Currency (OCC), stated that cryptocurrency companies seeking a U.S. federal banking license should be treated the same as other financial institutions. The OCC explicitly stated that institutions engaged in digital asset business can apply for federal banking licenses on an equal footing with traditional institutions, meaning that for the first time, the crypto industry has a formal path to the "core compliance layer" of the U.S. banking system. This convergence of the US banking and cryptocurrency industries is significant for Wall Street: for Wall Street, cryptocurrency is no longer a reputational risk, but a revenue stream they can no longer ignore. 2. European Investors Buy US Crypto ETFs Morgan Stanley's move also has a direct impact on European investors. Because US-listed ETFs do not comply with the EU's Collective Investment in Transferable Securities Scheme (UCITS) regime, European retail investors typically cannot purchase these ETFs. Since entering the European ETF market in 2023, Morgan Stanley has been expanding its share in the market and building the infrastructure needed to launch such funds that comply with EU regulations. While there are no UCITS-compliant spot cryptocurrency ETFs in Europe yet, major platforms such as Coinbase, one of the world's largest crypto asset exchanges, are partnering with financial institutions like Morgan Stanley with the aim of enabling cryptocurrency ETF trading in Europe this year. Their shared goal is not only to comply with UCITS rules but also with the EU Crypto Asset Markets (MiCA) rules, which require companies to hold a Crypto Asset Service Provider (CASP) license.
October 2025: Morgan Stanley Removes Restrictions on Crypto Fund Holdings for Wealth Management Clients
Morgan Stanley notified its financial advisors that it is expanding access to cryptocurrency investments to all clients, allowing such investments in any type of account, including retirement accounts. Starting October 15, advisors will be able to recommend cryptocurrency funds to any client. Previously, this option was limited to clients with an aggressive risk tolerance and assets of at least $1.5 million. Morgan Stanley will rely on automated monitoring processes to ensure that clients do not over-concentrate their investments in this volatile asset class. The bank's Global Investment Committee recently released a model recommending that the maximum initial allocation to cryptocurrencies can be as high as 4%, depending on different objectives ranging from "wealth preservation" to "opportunity growth."
With Morgan Stanley removing eligibility requirements for cryptocurrency funds, the company will rely on automated monitoring processes to ensure clients do not over-concentrate on this highly volatile asset class. In a report dated October 1, Morgan Stanley Wealth Management Chief Investment Officer Lisa Shalette stated that the committee "considers cryptocurrency a highly speculative and increasingly popular asset class that many investors (but not all) will seek to explore."November 2025: Morgan Stanley Strategists' Forecast
Morgan Stanley strategists believe the crypto market has entered the "autumn phase" of Bitcoin's four-year cycle and advise investors to take profits before a potential "winter" arrives. Denny Galindo stated that historical data shows Bitcoin's price cycle exhibits a stable "three up, one down" rhythm. Galindo advises investors to lock in profits in advance to prepare for a possible crypto winter. "We are in autumn now," he said. "Autumn is the harvest season, the time to take profits. But the question is, how long will this 'autumn' last? When will the 'winter' begin?" This "harvest" metaphor suggests that Wall Street executives have begun to view the Bitcoin market's rhythm through a cyclical investment framework, similar to commodity or liquidity-driven macroeconomic cycles.
Late December 2025: The Trend of Institutional Participation
Michael Saylor posted a photo with Morgan Stanley in the background and captioned "Guess the Bank," possibly emphasizing the trend of institutional participation in Bitcoin again.
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