Morgan Stanley is seeking regulatory approval to launch exchange-traded funds (ETFs) linked to cryptocurrency prices, according to filings with the U.S. Securities and Exchange Commission. If approved, it would be the first major U.S. bank to introduce such products.
The bank plans to offer ETFs tied to bitcoin and solana, the filings show, as it looks to expand its presence in the digital asset market.
Growing regulatory clarity under U.S. President Donald Trump has encouraged traditional financial firms to move deeper into cryptocurrencies, which were once seen largely as speculative investments. In December, the Office of the Comptroller of the Currency allowed banks to act as intermediaries in crypto transactions, further narrowing the gap between traditional finance and digital assets.
Many investors prefer gaining exposure to cryptocurrencies through ETFs, which offer better liquidity, improved security, and simpler regulatory oversight than holding the assets directly.
“It’s interesting to see Morgan Stanley enter what has become a competitive market,” said Bryan Armour, an ETF analyst at Morningstar. “They may be looking to shift existing bitcoin investors into their own ETFs, which could help them gain traction despite entering later than others.”
Analysts say a major bank launching crypto ETFs adds credibility to the market and could prompt other banks to follow.
Since the SEC approved the first U.S.-listed spot bitcoin ETF two years ago, a growing number of financial firms—mostly asset managers—have launched similar products. U.S. banks, which have largely served as custodians, are now moving toward a more active advisory role in crypto investing.
In October, Morgan Stanley expanded access to crypto investments to all clients and account types, according to media reports. Bank of America also took a step forward, allowing its wealth advisers to recommend crypto allocations to clients starting in January, without minimum asset requirements.
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