Morgan Stanley files with SEC to launch spot ETF for Ethereum

Morgan Stanley, a Wall Street financial giant, has filed with the US Securities and Exchange Commission (SEC) to launch a spot for an Ethereum ETF.  The filing comes just a day after Morgan Stanley filed for Bitcoin and Solana ETFs. 

The bank submitted an S-1 registration statement on Wednesday. According to the paperwork, Morgan Stanley Ethereum Trust will hold Ether and track its price while also generating rewards from staking a portion of the fund’s holdings.

The trust will reflect staking rewards through its net asset value, rather than distributing staking rewards directly to shareholders.  This approach differs from that of now Ethereum ETF rival issuers like Grayscale, which have begun paying staking income to investors.

Morgan Stanley welcomes three crypto ETF filings in roughly 24 hours

Morgan Stanley began offering crypto access to clients in October through its wealth management arm. As reported by Cryptopolitan, the bank also submitted paperwork for spot Bitcoin and Solana ETFs, marking three crypto ETF filings in roughly 24 hours from one of the world’s largest wealth managers.

Morgan Stanley plans to offer in-kind creation and redemptions for its ETH Trust. However, the filing doesn’t specify which exchange the fund will list on, the ticker, or other key details, such as the Trust’s custodian.

Previously, TradFi giant revealed plans to venture into the crypto space by offering crypto trading services to its retail customers. The firm confirmed its partnership with crypto startup ZeroHash, enabling its E-Trade clients to trade crypto assets.

The firm is also likely to offer its BTC, ETH, and SOL ETFs to its wealth clients when they become effective. According to reports, it has already removed all restrictions on crypto investments for this client category. 

Bloomberg Intelligence analysts James Seyffart and Eric Balchunas said the initial filings on Tuesday came as a surprise. However, they stated that it makes sense due to the bank’s massive distribution and clear client demand, as it covers 42 countries.

Bitwise Chief Investment Officer (CIO) Matt Hougan described Morgan Stanley’s move to offer crypto ETFs as “pretty remarkable.” This came as he revealed that the firm manages 20 ETFs but mainly under the Calvert, Parametric, and Eaton Vance brands. As such, the BTC, ETH, and SOL ETFs will be the 3rd, 4th, and 5th to bear the “Morgan Stanley” brand.

Morgan Stanley calls bull rally for gold 

This move comes as Ethereum continues to record inflows. Yesterday, BlackRock’s ETHA attracted $197.7 million. The Bitwise Ethereum Strategy ETF (ETHW) and 21Shares Core Ethereum ETF (CETH) both recorded modest inflows of $1.39 million and $1.62 million, respectively.

However, the ETFs have shown institutional preference as Fidelity’s Ethereum Fund (FETH) experienced a minor outflow of $1.62 million. Grayscale’s offerings showed notable outflows, with Grayscale Ethereum Trust (ETHE) losing $53 million and Grayscale Mini ETH shedding $32.45 million.

Besides going bullish on crypto, the firm has predicted a gold price of $4,800 an ounce for the fourth quarter of 2026. The bank cited the prospect of further interest-rate cuts, an expected leadership change at the US Federal Reserve, and continued gold purchases by central banks and selected investment funds. 

Lower interest rates typically reduce returns on fixed-income assets, which historically increases gold’s appeal as a non-yielding store of value. The bank also referenced recent events in Venezuela as factors reinforcing gold’s safe-haven status, although the bank did not explicitly include them in its numerical forecast.

Meanwhile, the price of ETH remains steady, with a minor decline of 0.7% over the last 24 hours. However, the coin has still experienced a 7% surge over the last week, now trading at $3,214.

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.