Morgan Stanley Seeks SEC Approval to Become First Major U.S. Bank to Launch Crypto Price ETFs

Morgan Stanley has filed a registration statement with the U.S. Securities and Exchange Commission to launch exchange-traded funds (ETFs) tied to the prices of Bitcoin and Solana according to Reuters. The filings were submitted on January 6, 2026, and mark the first time a major U.S. bank has applied for such crypto-linked ETFs as reported by Business Times. The bank aims to deepen its presence in digital assets following two years of regulatory developments around spot crypto ETFs according to Coinpedia.

The proposed ETFs include the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust. The Bitcoin Trust will hold Bitcoin directly and track its price net of fees, while the Solana Trust will also allocate a portion to staking as detailed in Coinpedia. This move positions Morgan Stanley to compete with major asset managers in the growing crypto ETF market according to LookOnChain.

Morgan Stanley's entry into the space aligns with broader institutional interest in digital assets. Since the SEC approved the first spot Bitcoin ETFs in early 2024, the market has expanded rapidly according to Coinpedia. Over $123 billion in total net assets now sit in U.S. spot Bitcoin ETFs, representing 6.57% of Bitcoin's total market capitalization as reported by Yahoo Finance.

Why Did This Happen?

Regulatory clarity under the Trump administration has encouraged traditional financial institutions to explore digital assets more aggressively. The Office of the Comptroller of the Currency recently allowed banks to act as intermediaries in crypto transactions according to CoinDesk. Morgan Stanley has already expanded access to crypto investments for all clients, including retirement accounts, since October 2025 as Bloomberg reports.

The firm is also capitalizing on the growing demand for crypto ETFs. These products offer greater liquidity, security, and regulatory compliance compared to direct ownership of the underlying assets according to FXStreet. Morgan Stanley's wealth management arm, with thousands of advisors, is positioned to vertically integrate these products into client portfolios as Decrypt reports.

How Did Markets Respond?

The Bitcoin ETF market saw $471.3 million in inflows on January 2, 2026, the first trading day of the year according to The Block. BlackRock's iShares Bitcoin Trust (IBIT) led with $287.4 million in inflows. Ethereum ETFs also saw strong performance, with a combined $174.4 million in inflows as reported by Cointelegraph.

Bitcoin's price stood at $92,670 as of January 6, 2026, showing resilience amid broader market volatility. The Trump administration's recent geopolitical actions, including the capture of Venezuelan President Nicolás Maduro, were cited as factors influencing investor sentiment toward crypto.

What Are Analysts Watching Next?

Analysts are monitoring how the SEC will respond to Morgan Stanley's filings and whether it will expedite approval given the growing market interest. Institutional investors are also watching for further regulatory developments that could impact the structure of crypto ETFs.

Morgan Stanley's entry into the market is seen as a sign of confidence in crypto's long-term role in institutional portfolios. The firm is now in direct competition with asset managers like BlackRock and Fidelity.

Investors are also tracking whether smaller, niche crypto ETFs will continue to attract inflows or face closures due to lack of demand. Grayscale recently announced its first Ethereum staking payout for its ETF, a development that could signal broader adoption of staking-enabled crypto products.