Morgan Stanley Shakes Up Crypto: Bitcoin & Solana ETF Applications Land at SEC
Wall Street's institutional embrace of crypto just got a major upgrade. Morgan Stanley, the trillion-dollar asset management titan, has formally filed applications with the U.S. Securities and Exchange Commission for spot exchange-traded funds tracking Bitcoin and Solana.
The Institutional Stamp of Approval
This isn't just another filing. It's a signal flare from traditional finance. When a heavyweight like Morgan Stanley moves, the market listens. The applications propose funds that would hold the underlying assets directly, giving clients pure-play exposure without the complexities of custody or direct ownership—a classic Wall Street move to package innovation into familiar, regulated wrappers.
Why Solana Steals the Spotlight
While a Bitcoin ETF was anticipated, the inclusion of Solana is the strategic curveball. It signals a bet beyond the digital gold narrative, targeting the high-throughput blockchain seen as a potential Ethereum challenger. Morgan Stanley isn't just buying the store of value thesis; it's placing a calculated wager on the utility and scalability of next-gen blockchain networks.
The Regulatory Gauntlet Awaits
Filing is one thing; approval is another. The SEC's scrutiny will be intense, particularly for Solana, which has faced its share of network outages and regulatory ambiguity. The process will be a litmus test for how regulators categorize assets beyond Bitcoin—and whether traditional finance's lobbying power can grease the wheels where crypto-native firms have struggled.
If greenlit, these ETFs would open the floodgates for millions in dormant institutional capital, all waiting for a compliant on-ramp. It’s a masterclass in financial alchemy: taking volatile, disruptive tech and repackaging it into something a pension fund manager can explain at a golf outing. The future of finance isn't knocking anymore—it's filing paperwork.
Morgan Stanley has filed an S-1 registration with the U.S. Securities and Exchange Commission to launch a spot Bitcoin ETF. The filing, submitted on January 6, puts the $1.6 trillion wealth management giant in direct competition with BlackRock and Fidelity.
The product, called the Morgan Stanley bitcoin Trust, will track the price of Bitcoin net of fees and expenses. The bank also filed for a Solana ETF on the same day.
How the Morgan Stanley Bitcoin Trust Works
The trust will hold Bitcoin directly rather than using derivatives or leverage. Its net asset value will be calculated daily using a pricing benchmark from major spot exchanges.
The fund is passive. It will not trade Bitcoin based on market conditions.
Shares will be created and redeemed in large blocks by authorized participants, either in cash or in kind. Retail investors can buy and sell shares on the secondary market through brokerage accounts. The ticker symbol has not been disclosed.
Morgan Stanley’s Crypto Access Expansion
This filing comes months after Morgan Stanley opened crypto access to all clients starting October 15. Before this, only clients with at least $1.5 million and aggressive risk profiles could invest.
Now, advisers can pitch crypto funds to anyone, including those with retirement accounts like IRAs and 401(k)s.
Morgan Stanley’s wealth division has about 16,000 financial advisers managing approximately $6.2 trillion in assets for over 19 million clients. American retirement accounts hold about $45.8 trillion total, with IRAs containing roughly $18 trillion and 401(k) plans holding around $9.3 trillion.
Until now, advisers could only offer Bitcoin funds from BlackRock and Fidelity.
Institutional Interest Continues to Build
Morgan Stanley is not alone in this push. Asset management firm T. Rowe Price filed for its first crypto ETF last year as institutional firms increasingly embrace digital assets.
The spot Bitcoin ETF market has grown rapidly since the SEC approved these products two years ago. Morgan Stanley’s entry marks another major Wall Street player moving deeper into crypto.
