Morgan Stanley is preparing to take a far more direct role in crypto markets, signaling a shift in how large U.S. banks approach digital assets.
Recent regulatory filings show the bank is exploring the launch of exchange-traded funds linked directly to cryptocurrency prices, a step that would move it beyond advisory and custody services into product issuance.
Key Takeaways
Morgan Stanley is seeking approval to launch ETFs linked to Bitcoin and Solana prices.
The move would make it the first major U.S. bank to sponsor spot crypto ETFs.
Clearer U.S. regulations are encouraging banks to expand beyond crypto custody roles.
Crypto ETFs remain the preferred way for many investors to gain regulated exposure to digital assets.
According to documents filed with the U.S. Securities and Exchange Commission, Morgan Stanley is seeking approval for ETFs that would track the prices of Bitcoin and Solana. If cleared, the funds would make Morgan Stanley the first major U.S. bank to sponsor spot crypto ETFs, a space so far dominated by asset managers rather than banks.
Banks edge closer to direct crypto exposure
Until recently, large U.S. banks largely limited their crypto involvement to safekeeping assets or offering indirect exposure through third-party products. Morgan Stanley’s move suggests that boundary is starting to blur. Instead of simply facilitating access, banks are now positioning themselves as issuers and architects of crypto investment vehicles.
This shift has been supported by a friendlier regulatory backdrop. Under Donald Trump, U.S. regulators have offered clearer guidance on how traditional financial institutions can interact with digital assets. In December, the Office of the Comptroller of the Currency allowed banks to act as intermediaries in crypto transactions, reducing long-standing uncertainty around compliance.
Why ETFs remain the preferred format
ETFs have become the dominant bridge between traditional finance and crypto markets. For many investors, they offer a way to gain price exposure without dealing with wallets, private keys, or on-chain risks. Liquidity, regulatory oversight, and operational simplicity continue to make ETFs more attractive than holding tokens directly.
Since U.S. regulators approved the first spot Bitcoin ETF two years ago, the market has expanded rapidly. A growing number of issuers have launched crypto-linked funds, as demand has shifted from speculative trading toward regulated investment products.
Wealth management strategies evolve
Morgan Stanley’s ETF filing follows internal changes at the firm. Last year, the bank broadened access to crypto investments across its client base, allowing more customers and account types to participate. That move aligned with a wider trend across U.S. banks to integrate digital assets into standard wealth management offerings.
Other institutions are taking similar steps. Bank of America recently began allowing its wealth advisors to recommend crypto allocations without minimum asset thresholds, underscoring how quickly attitudes are changing within traditional finance.
Regulatory changes clear the runway
Regulators have also adjusted the rules of the game. The SEC updated its ETF listing framework last year, simplifying requirements for spot crypto products and opening the door to a broader range of issuers. Those changes have made it easier for established financial institutions to compete with specialist asset managers.
If approved, Morgan Stanley’s crypto ETFs would mark more than a new product launch. They would signal that large U.S. banks are no longer content with a supporting role in crypto markets, but are ready to compete directly as crypto investment providers within the traditional financial system.
