Morgan Stanley submits applications for three crypto ETFs within 24 hours, "catching up" on cryptocurrency.

Author: Felix, PANews

At the start of the new year, Morgan Stanley has been particularly active in the crypto space. It has not only filed documents with the U.S. Securities and Exchange Commission (SEC) to apply for the launch of a spot crypto trust product, but also plans to launch a digital wallet and support tokenized assets.

As one of the world's largest wealth management companies and the sixth-largest bank in the United States in terms of assets under management, Morgan Stanley has gradually shifted from cautious observation to active embrace of the crypto space in recent years. Compared to other banks such as JPMorgan Chase and Goldman Sachs' active involvement in cryptocurrency, Morgan Stanley seems to be quickly "catching up" and joining the crypto wave.

Early caution towards cryptocurrencies

Morgan Stanley initially adopted a cautious approach to cryptocurrencies, primarily participating indirectly through custody services and the distribution of third-party products. In 2024, after the U.S. SEC approved the first spot Bitcoin ETFs, crypto assets began to gain mainstream acceptance. However, Morgan Stanley still restricts crypto investments, allowing only high-net-worth clients (with assets of at least $1.5 million) and those with an "aggressive" risk tolerance to invest in Bitcoin or Ethereum funds through taxable brokerage accounts.

In 2025, with the easing of US regulations and the increase in the size of crypto ETF assets, Morgan Stanley adjusted its strategy. In September 2025, it announced a partnership with crypto infrastructure provider Zerohash to offer crypto trading to retail investors through the E-Trade platform in 2026.

In October 2025, Morgan Stanley will fully lift restrictions on crypto investments, allowing all clients (including retirement accounts such as IRAs and 401(k)) to invest in products such as spot Bitcoin ETFs through recommendations from wealth management advisors.

Submit three crypto ETF applications within 24 hours

As we move into 2026, Morgan Stanley is accelerating its moves in the cryptocurrency space. On January 6, according to information released by the U.S. Securities and Exchange Commission (SEC), the Wall Street firm managing approximately $6.4 trillion in assets has filed S-1 documents for its Bitcoin Trust and Solana Trust, with the Solana Trust also including a staking feature.

On January 7, Morgan Stanley further expanded its presence in the crypto product sector. It filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a spot Ethereum ETF. The trust will hold Ethereum and aim to track its price movements, while generating returns through pledging a portion of the fund's holdings. The filing states that these returns will be reflected in the trust's net asset value, rather than being directly distributed to shareholders as collateral gains.

Morgan Stanley is not a top issuer in the ETF space, managing approximately 20 ETFs, but only two are currently issued under the Morgan Stanley name. The Ethereum Trust application means that Morgan Stanley submitted three applications for crypto ETFs in just 24 hours, demonstrating its strong focus on the crypto sector.

The plan is to launch a digital wallet in the second half of the year.

In addition to planning to launch BTC, ETH, and SOL ETF trading on its E-Trade platform, Morgan Stanley also plans to launch its own digital wallet.

On January 8, Morgan Stanley outlined its plans for investments in digital assets, corporate office services, and the private market. The plan includes launching a self-developed digital wallet later this year to support cryptocurrency holding and management, while focusing on tokenized assets, including blockchain representations of traditional securities (such as stocks and bonds), private equity, and real estate. The aim is to deeply integrate cryptocurrency and physical asset tokenization into traditional financial services.

Jedd Finn, head of wealth management at Morgan Stanley, said: “This really indicates that the way financial services infrastructure is about to change. Over time, as our infrastructure develops, we will be able to better integrate the traditional finance (TradFi) and decentralized finance (DeFi) ecosystems.”

Not only Morgan Stanley, but also Bank of America and Citibank, which were previously relatively absent from the crypto space, are increasing their investment in 2026. For example, starting in January 2026, Citibank will allow wealth advisors to recommend 1-4% crypto allocations to all clients, and Citibank plans to launch a crypto custody service in 2026 (which has been under development for 2-3 years), including holding native crypto tokens.

From a cautious approach to easing restrictions, and then to actively embracing cryptocurrencies, Morgan Stanley's shift in attitude as cryptocurrencies integrate into mainstream society is a microcosm of the changes experienced by many traditional financial institutions. In the future, with the approval of ETFs and the full rollout of digital wallets, cryptocurrencies may provide Morgan Stanley with a long-term competitive advantage and accelerate the digital transformation of global finance.

Related reading: Morgan Stanley submits application for Bitcoin and Solana ETFs, marking a new phase in institutional participation.