Morgan Stanley Files Ethereum Trust as Crypto ETF Push Gathers Speed

• Morgan Stanley files Ethereum Trust, marking deeper Wall Street crypto expansion.
• Trust earns staking rewards but reflects them in net asset value, not payouts.
• Ethereum tests $3,200 support as analysts monitor potential sustained uptrend.

Morgan Stanley has taken a decisive step deeper into digital assets, signaling a broader shift in Wall Street’s crypto strategy. The global bank has filed an S-1 registration statement with the US Securities and Exchange Commission for an Ethereum Trust. 

The move arrived just one day after filings tied to Bitcoin and Solana investment products. Consequently, the firm has submitted three crypto ETF-related filings within roughly 24 hours, underscoring growing institutional confidence in the sector.

The Ethereum Trust aims to hold Ether directly while tracking its market price. Additionally, the structure allows the fund to earn staking rewards on a portion of its holdings. 

Instead of paying those rewards to investors, the trust will reflect them through its net asset value. Hence, the design differs from other Ethereum ETF products that pass staking income directly to shareholders.

Morgan Stanley Expands Its Crypto ETF Push

The filing highlights Morgan Stanley’s intention to offer in-kind creations and redemptions for the Ethereum Trust. However, the paperwork does not disclose the exchange listing, ticker symbol, or custody provider. 

Significantly, reports indicate the bank has already removed internal restrictions on crypto exposure for wealth management clients. Moreover, the firm plans to make its Bitcoin, Ethereum, and Solana products available once regulators approve them.

According to CNBC, Morgan Stanley stands as the first major US bank to file for a Bitcoin ETF. That distinction reflects how traditional finance firms now view crypto as a core investment category. Besides attracting institutional flows, these products may also bring greater liquidity and market stability over time.

Related: Morgan Stanley’s Mike Wilson Changes Stance; Says. “We Are Now in a New Bull Market”

Ethereum Price Reacts to Institutional Signals

Despite the ETF momentum, Ethereum as of press time price declined. ETH traded near $3,165 after posting a daily drop of about three percent. However, weekly performance remained positive, supported by renewed technical strength. Consequently, analysts continue to focus on trend confirmation rather than short-term volatility.

Michaël van de Poppe observed that Ethereum broke above its 21-day moving average and defended it as support. He noted that the structure now resembles Bitcoin’s recent consolidation. Additionally, he suggested that maintaining this level could signal a sustained uptrend for the first time in months. His outlook places the next major resistance zone near $3,800.

Related: Morgan Stanley Now Recommends 4% Crypto Allocation for Growth Portfolios

Another analyst, TedPillows, pointed to Ethereum’s first red daily candle after six consecutive gains. He explained that the pullback cleared late bullish positions without damaging the broader structure. Moreover, he emphasized that holding above the $3,200 level would keep upward momentum intact.