Morgan Stanley Plans Bitcoin Trading on E-Trade by 2025

Morgan Stanley, a financial powerhouse managing $1.7 trillion in client assets, is actively developing a plan to introduce Bitcoin and other cryptocurrency trading on its E-Trade platform. The initiative, currently in its early stages, aims for a launch within the next calendar year, though an exact date has not been finalized. This move follows earlier explorations by Morgan Stanley’s E-Trade in January, which anticipated a favorable regulatory environment under the Trump administration.

What started as a quiet exploration has evolved into active planning, driven by policy changes and competitive positioning. The goal is to launch spot crypto trading on E-Trade by 2025, potentially making Morgan Stanley the first major US bank to enter the retail crypto market on a large scale. The bank is also considering partnerships with established crypto firms to facilitate this plan.

Currently, E-Trade offers indirect exposure to cryptocurrencies through various investment products but does not provide direct crypto trading. Once implemented, this initiative would place E-Trade among the major traditional financial institutions venturing into the digital asset trading sector, potentially challenging key players like Robinhood and Coinbase.

Morgan Stanley has been proactive in its approach to cryptocurrencies. A few months after the launch of US-listed spot Bitcoin ETFs, the bank began allowing its financial advisors to recommend Bitcoin ETF products to high-net-worth clients who met specific eligibility criteria. The offerings included funds from BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, two of the most prominent products in the market. This shift occurred in August 2024, around three months ahead of the US presidential election, demonstrating Morgan Stanley's cautious yet strategic approach to the crypto market.

As Morgan Stanley continues to explore direct spot trading via E-Trade, it maintains a measured approach, reflecting its commitment to navigating the evolving regulatory landscape and ensuring a smooth transition into the digital asset trading sector. This development underscores the growing acceptance of cryptocurrencies within traditional financial institutions and highlights Morgan Stanley's strategic positioning in the rapidly evolving financial landscape.