Key Points
- Morgan Stanley is the first major U.S. bank to file for its own crypto ETFs. The bank plans to launch funds linked to the prices of bitcoin and Solana.
- This move is a sign of growing mainstream acceptance of cryptocurrencies.
- The regulatory environment under President Trump has encouraged banks to embrace digital assets.
- Many investors prefer ETFs for their liquidity, security, and regulatory simplicity.
Morgan Stanley is taking a major step into the cryptocurrency market. The investment banking giant filed paperwork with the SEC on Tuesday to launch its own exchange-traded funds (ETFs) linked to crypto token prices. This is the first time a major U.S. bank has made such a move, signaling a significant shift in how Wall Street views digital assets.
According to the filings, Morgan Stanley plans to launch ETFs for both Bitcoin and Solana. This will allow the bank to offer its clients a simple and regulated way to invest in the crypto market. Many investors prefer ETFs because they are more liquid and secure than buying and holding the actual coins.
This move comes as the regulatory environment for crypto in the U.S. has become much clearer under President Donald Trump. The government has taken several steps to bridge the gap between traditional finance and the digital asset ecosystem.
In December, the Office of the Comptroller of the Currency even permitted banks to act as intermediaries for crypto transactions.
For the past couple of years, since the SEC first approved a spot bitcoin ETF, a flood of asset managers have launched their own crypto funds. However, the major U.S. banks have been more cautious, primarily serving as custodians for their clients’ crypto investments. Now, it seems they are ready to move from being passive facilitators to active players in the market.
This isn’t Morgan Stanley’s first foray into crypto. The bank expanded access to crypto investments for all clients in October. Bank of America followed soon after, allowing its wealth advisors to recommend crypto to their clients.
With the SEC also making it easier to list new crypto ETFs, Morgan Stanley’s move is likely just the beginning of a wave of new crypto products from the biggest names in finance.
