Morgan Stanley Charges Bitcoin, Pushes Solana ETFs Into Digital Assets

Morgan Stanley is seeking regulatory approval to launch exchange-traded funds tied to the price of cryptocurrency tokens, according to documents filed Tuesday with the U.S. Securities and Exchange Commission, the first move by a major U.S. bank.The bank plans to launch ETFs linked to the price of the cryptocurrencies bitcoin and solana, according to the documents, with the aim of deepening its presence in the cryptocurrency space.

Clear regulations under US President Donald Trump have encouraged mainstream finance companies to embrace digital assets, once considered purely speculative instruments.In December, the Office of the Comptroller of the Coin also allowed banks to act as intermediaries in crypto transactions, narrowing the gap between the traditional sector and digital assets.Several investors prefer to hold cryptocurrencies through ETFs, which offer greater liquidity, security, and make regulatory compliance easier than managing the underlying assets directly.

In the two years since the SEC approved the first US-listed spot bitcoin ETF, a wide range of financial institutions – mainly asset managers – have stepped up to issue such funds.

U.S. banks, which have mostly acted only as custodians of customers’ investments, want to evolve from cautious facilitators to active advisors. In October, Morgan Stanley expanded access to crypto investments to all clients and account types, according to media reports.Bank of America followed suit, allowing its wealth advisors to recommend allocations to cryptocurrencies in client portfolios starting in January, without any asset thresholds.

The SEC also revamped the listing rules for new spot ETFs tied to cryptocurrencies last year, paving the way for a host of new products.