Morgan Stanley Files for Bitcoin and Solana ETFs as Institutional Interest in Cryptocurrencies Grows

Morgan Stanley filed Form S-1 with the U.S. Securities and Exchange Commission on Jan. 6, 2026, to launch a spot Bitcoin exchange-traded fund (ETF) according to CoinDesk. The filing outlines the proposed Morgan Stanley Bitcoin Trust, designed to track the price of Bitcoin directly without using derivatives or leverage as reported by CoinCentral. The fund will be listed on a national securities exchange, though the ticker symbol remains undisclosed according to Coinpedia.

The Bitcoin Trust is sponsored by Morgan Stanley Investment Management and will hold Bitcoin directly in custodial arrangements as detailed by Bitcoin Systems. Its net asset value will be calculated daily using a benchmark derived from major spot exchanges per Yahoo Finance. The structure allows authorized participants to create and redeem shares in large blocks, either in cash or in kind according to Economic Times.

In addition to the Bitcoin offering, Morgan Stanley also filed for a Solana Trust, which will provide exposure to the Solana blockchain's native token as reported by Yahoo Finance. Unlike the Bitcoin offering, the Solana Trust proposes to stake a portion of its holdings to generate staking rewards according to InvestingLive. These earnings will be added to the fund's net asset value, offering investors both price appreciation and yield as noted by CoinDesk.

Why Did This Happen?

The move follows the rapid expansion of spot Bitcoin ETFs in the U.S., with over $123 billion in net assets currently managed across these products according to TradingView. Morgan Stanley's decision aligns with broader institutional confidence in regulated crypto offerings as reported by Seeking Alpha. The firm has also expanded access to crypto investments for its E*Trade clients, indicating a strategic shift toward digital assets according to MarketBeat.

Regulatory clarity under the Trump administration and the Office of the Comptroller of the Currency's recent decision to allow banks to act as intermediaries in crypto transactions have supported this shift. These developments have reduced perceived risks and encouraged traditional financial institutions to explore crypto as an investment class.

How Did Markets React?

The filing has been interpreted as a sign of growing legitimacy in the crypto ETF market. Bryan Armour, an ETF analyst at Morningstar, noted that Morgan Stanley's entry could attract investors seeking institutional-grade exposure to crypto. The bank joins other Wall Street firms, including JPMorgan Chase and Goldman Sachs, in deepening their digital asset strategies.

Bitcoin and Solana ETFs have attracted significant inflows, especially in the case of Bitcoin, which has become a dominant institutional entry point. However, non-Bitcoin ETFs have seen weaker performance, highlighting continued investor preference for perceived safer assets.

What Are Analysts Watching Next?

Analysts are closely monitoring the SEC's potential approval timeline and the performance of the new ETFs once listed. Todd Sohn of Strategas Securities said the move reinforces the broader trend of institutional acceptance of crypto. The success of Morgan Stanley's offerings could influence other firms to follow suit, further expanding the crypto ETF market.

Retail investors will also be watching how these products perform on brokerage platforms. The ability to trade shares through traditional accounts simplifies access, which may attract new participants into the crypto space.

The broader market is also watching how regulatory frameworks evolve, particularly regarding custody, risk, and investor protection. These factors could shape the long-term adoption of crypto ETFs among both institutional and retail investors.