Morgan Stanley, a US investment bank, has asked the Securities and Exchange Commission (SEC) to let it launch two cryptocurrency exchange-traded funds (ETFs) that focus on Bitcoin and Solana. This is a sign that Wall Street is moving more into regulated digital-asset products.
Morgan Stanley proposes two digital asset trusts
According to the Form S-1 documents filed on Jan. 6, the proposed Morgan Stanley Bitcoin Trust and Morgan Stanley Solana Trust are both designed as passive investment vehicles that track the performance of their underlying assets. The filings show each trust intends to hold spot tokens directly rather than using derivatives or leverage.
The Morgan Stanley Bitcoin Trust aims to mirror the price of Bitcoin, net of fees and expenses. It will calculate its net asset value daily using a designated Bitcoin pricing benchmark derived from activity across major spot exchanges. Shares will be created and redeemed in large blocks by authorized participants, either in cash or in kind. Retail investors will gain access by trading shares through traditional brokerage accounts.
For the Solana Trust, the structure is similar. It will track Solana’s price and hold the tokens on behalf of investors. A planned ticker symbol for either trust has not yet been disclosed.
Custody and structural details
According to the filings, Morgan Stanley Investment Management is listed as the sponsor and CSC Delaware Trust Company will act as Delaware trustee. Custodial arrangements have not been fully specified, though Morgan Stanley confirmed that a substantial portion of private keys will be kept in cold storage, with a smaller portion maintained in hot wallets to facilitate operations.
Morgan Stanley stated that the trusts will not engage in speculative trading of the underlying cryptocurrencies. Both products are purely designed to reflect market prices.
Expanding access for wealth management clients
If approved, the ETFs could open regulated exposure to digital assets for Morgan Stanley’s approximately 19 million wealth management clients. The bank’s advisors already manage a major portion of US retirement and investment accounts, which gives these products a broad potential distribution network.
The filings represent a significant step for Morgan Stanley, which previously limited client access to third-party crypto funds targeted at high-net-worth individuals. In October 2025, the company changed its policy to let advisors offer crypto investments in 401(k) plans and individual retirement accounts (IRAs).
Context of a growing institutional trend
Morgan Stanley’s move follows renewed momentum across traditional finance institutions entering the digital asset market. Bank of America began allowing wealth advisers to recommend exposure to four spot Bitcoin ETFs on Monday. The change affects over 15,000 advisers across its Merrill, Bank of America Private Bank, and Merrill Edge divisions.
Asset manager Vanguard enabled trading of crypto ETFs for clients in December 2025, while BlackRock became the first major firm to recommend a Bitcoin allocation, up to two percent, in December 2024.
According to SoSoValue data, spot Bitcoin ETFs now collectively hold about $123 billion in total net assets, equivalent to roughly 6.57% of Bitcoin’s total market capitalization. Net inflows since the start of the year have reached $1.1 billion. Solana-based funds, by comparison, have exceeded $1 billion in net assets after cumulative inflows of nearly $800 million.
Regulatory tailwinds and Wall Street’s pivot
The filings come amid a more favorable US regulatory environment for digital assets. The current government has passed laws like the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) and the Crypto Legal Accountability, Registration, and Transparency for Investors Act (CLARITY Act) to make the rules for the crypto sector clearer.
The SEC also updated ETF listing procedures in September 2025, easing the path for new commodities and crypto-linked products. That reform opened the door for large financial institutions like Morgan Stanley to bring spot crypto ETFs to market.
In the past, big asset managers like BlackRock controlled the crypto ETF market. But as fee income from spot Bitcoin products soared to hundreds of millions of dollars a year, the financial incentive for big US banks grew stronger.
Morgan Stanley now appears positioned to compete in that segment. Through its wealth management network, it can distribute digital asset ETFs directly while retaining associated management revenue.
This development underscores the broader institutional transition toward integrated digital asset offerings. With multiple top-tier banks entering the ETF market, crypto exposure is becoming a standard feature in US wealth portfolios.
Anastasiia G
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
