Morgan Stanley Expands Crypto Offerings with Spot Ethereum ETF Filing Following Bitcoin and Solana ETFs

Morgan Stanley has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Ethereum exchange-traded fund (ETF), the bank's third crypto product filing in a single 24-hour period according to Cointelegraph. The proposed fund, the Morgan Stanley Ethereum Trust, will seek to hold and track the price of Ether (ETH) and includes a staking component to generate passive yield. The bank previously filed for Bitcoin and Solana ETFs, signaling a growing commitment to the crypto asset class.

The Ethereum Trust filing states that the fund will not engage in speculative selling of Ether but will utilize third-party staking services to earn additional returns. This structure differs from some rival Ethereum ETF issuers, such as Grayscale, which recently began distributing staking rewards directly to shareholders. The trust will reflect these staking rewards in its net asset value (NAV) rather than distributing them directly.

Morgan Stanley's filings come as institutional interest in crypto products continues to rise. U.S. spot crypto ETFs have attracted over $2 trillion in trading volume, with Bitcoin ETFs alone holding $123.5 billion in assets under management. The bank's move aligns with broader industry trends as traditional financial institutions expand their crypto offerings to meet growing demand.

Why Did This Happen?

The Ethereum Trust filing is part of Morgan Stanley's broader strategy to offer regulated crypto investment vehicles. The bank has also set a 4% cap for crypto exposure in certain portfolios and expanded access to digital assets across client accounts, including retirement plans. This move reflects the increasing mainstream adoption of crypto as an asset class.

The timing of Morgan Stanley's filings coincides with a more crypto-friendly regulatory environment at the SEC. In September 2025, the agency approved new generic listing standards for crypto ETFs, streamlining the approval process. This regulatory shift has encouraged more traditional financial institutions to enter the space.

How Did Markets Respond?

U.S. spot Bitcoin ETFs saw $697 million in net inflows on January 6, 2026, the largest daily total since October. This surge in ETF inflows reflects renewed optimism in the crypto sector. Ethereum's validator exit queue has also dropped to zero, suggesting renewed institutional interest in staking.

Morgan Stanley's Ethereum Trust filing adds to a growing list of crypto ETFs. Spot Ethereum ETFs currently hold around $20 billion in assets, according to SosoValue data. The expansion of regulated crypto products is helping to attract a broader range of investors, including those previously hesitant to enter the market.

What Are Analysts Watching Next?

Analysts are closely watching how these new crypto ETFs perform in the market. The success of Bitcoin and Solana ETFs has shown strong demand, but Ethereum ETFs may face different dynamics due to the unique characteristics of the asset class. Bloomberg analysts James Seyffart and Eric Balchunas noted that the initial filings came as a surprise, underscoring the rapid pace of change in the crypto market.

Investors are also watching for regulatory developments. While the SEC's recent actions have improved the environment for crypto ETFs, ongoing regulatory clarity is still needed to ensure long-term stability. The inclusion of staking in the Ethereum Trust raises questions about how the SEC will continue to interpret and regulate these features in the future.

Morgan Stanley's foray into crypto ETFs is part of a broader trend among traditional financial institutions. Bank of America and Vanguard have also taken steps to integrate crypto ETFs into their offerings. As more major banks enter the space, the crypto market could see further institutionalization and mainstream adoption.