Morgan Stanley Files to Launch Crypto-Linked ETFs

Morgan Stanley is seeking regulatory approval to launch exchange traded funds (ETFs) tied to cryptocurrency tokens, a move that would mark the first time a major US bank has pursued crypto-linked ETFs.

According to filings with the US Securities and Exchange Commission, the bank plans to introduce ETFs tied to the price of Bitcoin and Solana.

The proposed products would not give investors direct exposure to spot bitcoin. Instead, they are designed to provide indirect access to crypto markets through a traditional brokerage account, avoiding some of the operational and custody risks associated with holding or transferring digital assets directly.

ETFs have become a popular route for investors seeking crypto exposure, offering a relatively low-cost and convenient structure with greater liquidity and fewer regulatory and logistical hurdles. However, since the SEC approved the first US-listed bitcoin ETF two years ago, the market has been dominated by asset managers rather than banks.

While the ETF filings represent a significant step, they form part of a broader push by Morgan Stanley into digital assets. In September, the bank revealed plans to offer cryptocurrency trading to retail clients through its E*Trade platform.

When the service launches in the first half of 2026, E*Trade users will be able to trade Bitcoin, Ether, and Solana, giving them direct ownership of the assets. The move is expected to reduce some third-party management fees, while also exposing investors to higher levels of risk.

Morgan Stanley has also taken steps to widen access to existing crypto products. In November, the firm prepared to allow its 15,000 financial advisers to recommend spot bitcoin ETFs, introducing suitability guardrails and allocation limits to guide client investments.