Morgan Stanley Files to Launch Bitcoin and Solana ETFs as Wall Street Embraces Crypto

Morgan Stanley has submitted regulatory filings for a spot Bitcoin exchange traded fund (ETF) and a Solana ETF on January 6, 2026. The filings were made with the U.S. Securities and Exchange Commission (SEC) and indicate the firm's strategic shift into in-house crypto product development. This move positions Morgan Stanley among major players like BlackRock and Fidelity in the crypto ETF space.

The proposed funds, called the Morgan Stanley Bitcoin Trust and Morgan Stanley Solana Trust, are designed to track the price of their respective assets directly rather than using derivatives or leverage. The structure aligns with existing spot Bitcoin ETFs, offering familiar access for investors seeking regulated exposure.

Shares in these trusts will be created and redeemed only in large blocks by authorized participants. Once issued, retail investors can trade them on secondary markets through brokerage accounts. The ticker symbols for the products have not yet been disclosed.

Why Did This Happen?

The filing follows a period of rapid growth in the U.S. spot Bitcoin ETF market. Since their approval two years ago, these funds have amassed $123 billion in total net assets, representing 6.57% of Bitcoin's total market cap. Over $1.1 billion in net inflows have been recorded since the start of 2026.

Morgan Stanley's move is also driven by the financial incentives associated with ETF and trust structures. The firm's large wealth management division sees an opportunity to keep management fees in-house by integrating crypto products directly into client portfolios. This strategy allows it to compete more effectively with third-party offerings.

How Will Markets Respond?

The approval of these ETFs could further boost institutional and retail interest in Bitcoin and Solana. According to projections, net inflows into crypto ETFs could reach $15 billion in a base case or surge toward $40 billion in a favorable market environment. Analysts like Eric Balchunas of Bloomberg Intelligence highlight the potential for ETFs to outpace the supply of new Bitcoin, Ethereum, and Solana, which could support price stability through supply-demand dynamics.

BlackRock's Bitcoin ETF has already become its top revenue source in recent months, with assets nearing $100 billion. Morgan Stanley's entry into this space adds another major name to an increasingly competitive field, reinforcing the role of traditional financial institutions in mainstreaming crypto access.

What Are Analysts Watching Next?

Analysts are closely monitoring regulatory developments and the SEC's stance on additional altcoin ETFs, including Solana and XRP. Institutional adoption and clearer guidelines are expected to drive further inflows into these products.

The performance of existing spot Bitcoin ETFs has been robust, with Bitcoin ETFs alone projected to manage assets of $180–$220 billion by year-end 2026. Assets under management across all crypto ETPs are anticipated to surpass $400 billion by the end of 2026, nearly doubling from the current $200 billion.

Solana, the second-largest altcoin by market cap, is expected to benefit from growing institutional interest. Price forecasts for 2026 range from $195 to $325, depending on market conditions and adoption of related infrastructure. The expansion of Solana's Internet Capital Markets from about $750 million to $2 billion is seen as a key catalyst.

Investors remain cautious, however, as market volatility and macroeconomic factors like Federal Reserve policy decisions could influence the trajectory of crypto ETF inflows. The possibility of a new Fed chair and potential shifts in monetary policy are also under scrutiny, particularly with Powell's term set to expire in May 2026.

In the broader context, Morgan Stanley's ETF filings underscore an evolving institutional landscape in the crypto space. As traditional banks and wealth managers integrate digital assets into mainstream portfolios, the market is moving closer to full recognition of crypto as a legitimate asset class. This shift is expected to benefit both institutional and retail investors seeking regulated exposure.