Morgan Stanley is accelerating its digital asset strategy, with a new morgan stanley etf proposal arriving as the bank also issues an aggressive gold outlook.
Morgan Stanley files for spot Ethereum ETF with staking component
Morgan Stanley, one of Wall Street’s largest banks, has filed with the US Securities and Exchange Commission (SEC) to launch a spot Ethereum exchange-traded fund. The move follows the bank’s spot Bitcoin and Solana ETF filings just a day earlier, underscoring its rapid expansion into listed crypto products.
The bank submitted an S-1 registration statement on Wednesday for the Morgan Stanley Ethereum Trust. According to the filing, the trust will hold Ether (ETH) and seek to track its market price, while also generating additional yield by staking a portion of the fund’s holdings on the Ethereum network.
Unlike some rivals, the trust will not pay out ETH staking rewards directly as income. Instead, the filing states that staking proceeds will be reflected in the fund’s net asset value, effectively capitalizing those rewards into the share price rather than distributing them to shareholders.
This design contrasts with issuers such as Grayscale, which have started to route staking income back to investors. However, Morgan Stanley’s approach may appeal to investors who prefer a simpler, total-return structure rather than dealing with separate yield distributions and potential tax complexity.
Three crypto ETF filings in roughly 24 hours
Morgan Stanley began offering access to digital assets in October through its vast wealth management division. Moreover, in roughly 24 hours it has now submitted paperwork for spot Bitcoin, Solana and Ethereum products, giving it a diversified suite of crypto exposure vehicles for clients.
The new trust is expected to support in-kind creation and redemption of shares, meaning authorized participants will deliver or receive ETH rather than cash when dealing directly with the fund. That said, the filing does not yet specify the listing exchange, ticker symbol, or which institution will act as the trust’s custodian.
Earlier, the bank had revealed plans to step deeper into the crypto market by enabling retail trading. It confirmed a partnership with startup ZeroHash to allow its E-Trade clients to buy and sell crypto assets, signaling long-term infrastructure investment beyond ETFs.
The bank is also expected to roll out its BTC, ETH and SOL funds across its wealth channel once the SEC declares them effective. According to reports, Morgan Stanley has already removed restrictions that previously limited crypto allocations for certain wealth clients, signaling a shift toward broader digital asset access.
Analysts react to Morgan Stanley’s crypto ETF strategy
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas described the initial crypto etf filings on Tuesday as unexpected. However, they acknowledged that the strategy fits the bank’s profile, given its massive distribution footprint and strong client demand across the 42 countries it serves today.
Matt Hougan, Chief Investment Officer at Bitwise, called Morgan Stanley’s push into crypto ETFs “pretty remarkable.” The firm currently manages around 20 ETFs, primarily under the Calvert, Parametric, and Eaton Vance brands. As such, the BTC, ETH and SOL products would become only the 3rd, 4th and 5th funds to actually carry the “Morgan Stanley” label.
Moreover, this growing lineup positions the bank to compete more directly with specialist asset managers in the digital asset space. One of the new products, the Morgan Stanley Ethereum Trust, could become a flagship vehicle for investors looking for regulated exposure to ETH combined with on-chain yield.
Rising institutional flows into Ethereum ETFs
This acceleration comes as Ethereum-linked products continue to attract fresh capital. Yesterday, BlackRock’s ETHA recorded strong institutional etf inflows of $197.7 million, highlighting sustained appetite among large investors for regulated ETH exposure.
Meanwhile, the Bitwise Ethereum Strategy ETF (ETHW) and the 21Shares Core Ethereum ETF (CETH) each saw modest but positive flows, pulling in $1.39 million and $1.62 million, respectively. However, the broader picture remains mixed, with some legacy vehicles still facing outflows as investors rotate into newer, lower-fee structures.
Fidelity’s Ethereum Fund (FETH) registered a small outflow of $1.62 million, while Grayscale Ethereum Trust (ETHE) lost $53 million. In addition, Grayscale Mini ETH shed another $32.45 million. That said, the influx into newer funds suggests that institutional preference is gradually shifting toward more cost-efficient and transparent ETFs.
Against this backdrop, the new Morgan Stanley ETF initiative around Ethereum could tap into reallocated capital from older structures. Moreover, it may appeal to clients who prefer dealing with a large, full-service bank rather than standalone crypto specialists.
Gold price forecast: Morgan Stanley calls for $4,800 by late 2026
Alongside its crypto push, Morgan Stanley has issued a notably bullish gold price forecast. The bank now projects gold to reach $4,800 an ounce in the fourth quarter of 2026, a level that would mark a major repricing of the traditional safe-haven asset.
The bank attributes this outlook to several macro drivers. First, it expects further interest-rate cuts to erode returns on fixed-income instruments. Historically, lower yields improve the relative appeal of non-yielding assets such as gold. Second, it anticipates a leadership change at the US Federal Reserve, which could usher in a more accommodative policy stance.
Moreover, Morgan Stanley points to ongoing gold purchases by central banks and selected investment funds as a structural source of demand. The bank also referenced recent developments in Venezuela as evidence supporting gold’s safe-haven role, even though those events were not explicitly quantified in its formal numerical projections.
Lower real rates have traditionally coincided with rising gold prices, as investors seek to protect purchasing power. That said, the bank’s $4,800 target remains contingent on continued monetary easing and sustained geopolitical uncertainty, both of which can amplify flows into defensive assets.
ETH market conditions as Morgan Stanley’s ETF plans advance
While Morgan Stanley etf initiatives expand, the underlying ETH market has remained relatively stable. Over the past 24 hours, the price of Ether has dipped by just 0.7%, yet over the last week it has climbed roughly 7%, now trading near $3,214.
These price dynamics come as spot ethereum etf products and futures-based strategies vie for investor attention. However, the combination of regulated exchange-traded vehicles, on-chain staking yields, and growing institutional adoption suggests Ethereum is increasingly viewed as a core component of diversified digital asset portfolios.
In summary, Morgan Stanley is moving aggressively to secure a leadership role at the intersection of traditional finance and crypto. With its Ethereum trust, a series of new spot ETFs, and a bold gold call for 2026, the bank is signaling that both digital assets and hard assets will be central to its long-term investment narrative.
Source: https://en.cryptonomist.ch/2026/01/07/morgan-stanley-etf-ethereum-trust/
