Morgan Stanley Files Bitcoin and Solana ETFs Marking Crypto Shift

Morgan Stanley has filed with the U.S. Securities and Exchange Commission for approval to launch exchange-traded funds (ETFs) tracking the price of Bitcoin and Solana according to Business Times. The filing marks the first time a major U.S. bank has directly sought to offer spot crypto ETFs. The move reflects growing institutional interest in regulated digital asset products as regulatory clarity improves under the Trump administration.

The proposed products, named the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust, are designed to offer investors direct exposure to the underlying cryptocurrencies.

The Solana Trust includes a staking feature, allowing the fund to earn rewards from locking up tokens to support the Solana blockchain network. This structure differentiates it from many existing crypto ETFs, which typically rely on derivatives rather than direct holdings.

Morgan Stanley's filing follows recent regulatory changes that have made it easier for banks to engage with crypto. The Office of the Comptroller of the Currency now allows banks to act as intermediaries in crypto transactions, and the SEC has streamlined listing standards for new crypto ETFs. These developments have encouraged broader participation from traditional financial institutions in the digital asset space.

Why Did This Happen?

Morgan Stanley's decision aligns with broader market trends showing increased demand for crypto exposure through regulated vehicles. Cumulative trading volume in U.S. spot crypto ETFs has now surpassed $2 trillion, with spot Bitcoin ETFs alone managing over $123.5 billion in assets. This growth has been driven by both institutional and retail investors seeking a simpler and more secure way to access digital assets.

The move also reflects a strategic shift by Morgan Stanley to expand its presence in the crypto market. The firm previously limited its role to custody and brokerage services but has now taken steps to become an active issuer of crypto products. This aligns with the firm's broader goal of integrating digital assets into its wealth management and investment advisory services.

How Did Markets React?

The news of Morgan Stanley's filing was received positively by the market. Bitcoin, the largest cryptocurrency by market capitalization, climbed to nearly $95,000 in early January, its highest level in weeks. Analysts suggest that the increased institutional participation and regulatory clarity have contributed to renewed investor confidence in crypto markets.

Inflows into crypto ETFs also accelerated in the first two trading days of 2026, with spot Bitcoin ETFs attracting $1.1 billion in net inflows. This follows a period of outflows in late 2025 and indicates a shift in investor sentiment. The inflows have provided support to Bitcoin's price, which had been consolidating near $90,000.

What Are Analysts Watching Next?

Analysts are closely watching the approval timeline for Morgan Stanley's ETFs and how they perform once launched. The firm's entry into the crypto ETF market could increase competition for existing products and potentially drive more institutional demand.

The success of Morgan Stanley's Solana Trust will also be monitored, as it introduces a staking component that could attract investors looking for yield-generating opportunities in the crypto space. Unlike Bitcoin, Solana offers passive income through staking, which may differentiate the product from others in the market.

Investors are also watching how the broader financial industry responds. Other major banks, including Goldman Sachs and Bank of America, have already taken steps to integrate crypto into their investment offerings. Morgan Stanley's move could signal further mainstream adoption and encourage other institutions to follow suit.

Morgan Stanley's Bitcoin and Solana ETF filings represent a significant milestone in the integration of digital assets into traditional finance. The filing reflects a broader industry trend of banks moving from passive custodians to active participants in the crypto market. As regulatory clarity continues to improve, more institutions are expected to enter the space, further expanding the market for crypto ETFs and related products.