Submitting 3 crypto ETF applications in 24 hours, Morgan Stanley "catching up" on cryptocurrencies

Author: Felix, PANews

At the beginning of the new year, Morgan Stanley has been particularly active in the crypto space. Not only has it repeatedly submitted filings to the U.S. Securities and Exchange Commission (SEC) to apply for spot cryptocurrency trust products, but it also plans to launch a digital wallet and support tokenized assets.

As one of the world’s largest wealth management firms and the sixth-largest bank in the U.S. asset management sector, Morgan Stanley’s recent foray into cryptocurrencies has shifted from cautious observation to active engagement. Compared to other banks like JPMorgan and Goldman Sachs, which have been more proactive in the crypto field, Morgan Stanley seems to be quickly “catching up” with the crypto wave.

Early Cautious Attitude Towards Cryptocurrency

Morgan Stanley initially adopted a cautious stance towards cryptocurrencies, mainly participating indirectly through custody services and third-party product distribution. In 2024, after the SEC approved the first spot Bitcoin ETFs, cryptocurrencies began to mainstream, but Morgan Stanley still limited crypto investments. Only high-net-worth clients (with assets of at least $1.5 million) and those with “aggressive” risk tolerance could invest in Bitcoin or Ethereum funds via taxable brokerage accounts.

In 2025, as U.S. regulations loosened and the assets under management in crypto ETFs increased, Morgan Stanley adjusted its strategy. In September 2025, it announced a partnership with crypto infrastructure provider Zerohash, planning to offer crypto trading to retail investors through the E-Trade platform in 2026.

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

Submitting Three Crypto ETF Applications Within 24 Hours

Entering 2026, Morgan Stanley accelerated its crypto activities. On January 6, according to information released by the SEC, this Wall Street firm managing approximately $6.4 trillion in assets had submitted S-1 filings for Bitcoin Trust and Solana Trust, with the Solana Trust also including staking features.

On January 7, Morgan Stanley further expanded its crypto product portfolio. It filed an application with the SEC to launch a spot Ethereum ETF. The trust will hold Ethereum and aims to track its price movements, while generating income through staking part of its holdings. The filing states that the trust will reflect these earnings through its net asset value (NAV), rather than distributing staking rewards directly to shareholders.

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

Plans to Launch Digital Wallet in the Second Half of the Year

In addition to plans to launch Bitcoin, Ethereum, and Solana ETFs on its E-Trade platform, Morgan Stanley also plans to introduce its own digital wallet.

On January 8, Morgan Stanley outlined plans for investments in digital assets, corporate banking, and private markets. It mentioned that later this year, it will launch a self-developed digital wallet supporting cryptocurrency holdings and management, with a focus on tokenized assets, including traditional securities (such as stocks and bonds), private equity, and real estate in blockchain form. The goal is to deeply integrate crypto and physical asset tokenization into traditional financial services.

Jedd Finn, Head of Wealth Management at Morgan Stanley, stated: “This essentially indicates that the way financial infrastructure operates is about to change. Over time, as our infrastructure develops, we will be better able to integrate traditional finance (TradFi) and decentralized finance (DeFi) ecosystems.”

Not only Morgan Stanley, but also previously somewhat absent in the crypto field, U.S. banks like Citibank are increasing their presence in 2026. For example, starting January 2026, Citibank will allow wealth advisors to recommend 1-4% crypto allocations to all clients. Citibank plans to launch crypto custody services in 2026 (developed for 2-3 years), including holding native cryptocurrencies.

From cautious attitude to relaxed restrictions and then to active engagement, Morgan Stanley’s transformation reflects the broader trend among many traditional financial institutions as cryptocurrencies become mainstream. With ETF approvals and the full rollout of digital wallets, cryptocurrencies could provide Morgan Stanley with long-term competitive advantages and accelerate the global financial digital transformation.

Related: Morgan Stanley submits Bitcoin and Solana ETF applications, marking a new stage of institutional participation