Morgan Stanley Files for Spot Bitcoin and Solana ETFs as Crypto ETF Inflows Surge in 2026

Morgan Stanley has filed an S-1 registration statement with the U.S. Securities and Exchange Commission for a spot Bitcoin ETF named the Morgan Stanley Bitcoin Trust. This marks the first time a major U.S. bank has sought approval to issue an ETF tied directly to Bitcoin's price.

The filing proposes a fund that will hold Bitcoin directly rather than using futures or leverage, positioning Morgan Stanley alongside other major crypto ETF issuers like BlackRock and Fidelity.

In addition to the Bitcoin ETF, Morgan Stanley has also filed for a Solana ETF, with a version that includes staking features. The move reflects growing institutional confidence in regulated crypto products and aligns with broader market trends.

Why Did This Happen?

Morgan Stanley's decision comes as U.S. spot crypto ETF trading volume has exceeded $2 trillion. The firm operates one of the largest wealth management businesses in the world, giving it a broad client base that could benefit from direct Bitcoin and Solana exposure according to market analysis.

The shift by Morgan Stanley from distributing third-party crypto products to issuing its own reflects both economic incentives and regulatory clarity. With the SEC approving new listing standards for crypto ETFs in late 2025, the path to approval has become smoother.

Institutional investors have shown renewed interest in crypto ETFs after a period of outflows in late 2025. The first trading day of 2026 saw $670 million in inflows across U.S. spot crypto ETFs.

How Did Markets React?

Bitcoin prices have surged in early 2026, with the price rising above $93,000 as ETF inflows continued. The market has shown signs of consolidation but remains supported by institutional buying.

The inflows have benefited multiple crypto ETFs, including BlackRock's iShares Bitcoin Trust and Grayscale's Ethereum Trust. These products now manage over $123 billion in assets, representing nearly 6.6% of Bitcoin's market cap.

Grayscale recently announced its first Ethereum staking payout, a move that could set a new precedent for yield generation in the ETF space. This is the first time a U.S.-listed spot crypto ETP has distributed staking rewards to shareholders.

What Are Analysts Watching Next?

Analysts are monitoring whether the current inflows are sustainable. While early 2026 has seen strong demand for crypto ETFs, on-chain metrics have weakened slightly. Capital formation has slowed, and long-term holders are beginning to realize losses.

The regulatory environment remains a key variable. The SEC's approval of new listing standards and its evolving stance on digital assets suggest continued regulatory clarity, which is crucial for institutional adoption.

Morgan Stanley's ETF filings are part of a broader trend of traditional financial institutions expanding into crypto. Firms like BlackRock and Fidelity have already captured large portions of the ETF market, and Morgan Stanley's entry may intensify competition.

Investors are also watching how staking features in ETFs will affect returns. Grayscale's Ethereum Staking ETF has distributed cash payouts from staking rewards, a model that could attract a new class of income-focused investors.

Market participants will be closely watching how these ETFs perform over time. Their success could reshape how institutional and retail investors access the crypto market, particularly as more firms consider launching their own products.