Morgan Stanley, a leading U.S. bank, has filed for regulatory approval to launch exchange-traded funds (ETFs) linked to cryptocurrency prices, marking a significant expansion of its digital assets strategy. The filings with the U.S. Securities and Exchange Commission (SEC) signal the bank’s first foray into offering ETFs based on major cryptocurrencies like Bitcoin and Solana, further bridging traditional finance and the growing digital asset market.

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Expansion into Cryptocurrency ETFs

According to the filings, Morgan Stanley plans to offer ETFs that track the price of Bitcoin and Solana tokens, enabling clients to gain exposure to these cryptocurrencies without directly holding the underlying assets. The move comes as digital assets gain mainstream acceptance, particularly after regulatory clarifications have made it easier for traditional financial institutions to participate in the crypto market.

Regulatory changes under U.S. policy, including guidance from the Office of the Comptroller of the Currency (OCC), now allow banks to act as intermediaries for crypto transactions. These developments have narrowed the gap between traditional banking services and digital asset investments, paving the way for products like crypto ETFs.

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Why Crypto ETFs Are Popular

Investors often prefer holding cryptocurrencies through ETFs because they offer several advantages:

• Greater liquidity: ETFs can be bought and sold like stocks.
• Enhanced security: Avoids the risk of managing private keys or wallets.
• Regulatory simplicity: Provides exposure to crypto without needing to comply with direct crypto trading regulations.

Bryan Armour, an ETF analyst, commented:
“Morgan Stanley entering the crypto ETF space legitimizes the market, and it allows clients who already invest in Bitcoin to shift into structured, regulated products, potentially accelerating adoption despite the bank’s later entry into the sector.”

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The Broader Institutional Push

In the two years since the SEC approved the first U.S.-listed spot Bitcoin ETF, numerous financial institutions, primarily asset managers, have launched crypto ETFs. Morgan Stanley’s move reflects a shift from banks acting as custodians of crypto investments to becoming active advisers and providers of crypto investment products.

In October 2025, Morgan Stanley expanded access to crypto investments to all clients and account types, signaling a broad strategy to integrate digital assets across its wealth management platforms. Following suit, Bank of America now allows its wealth advisers to recommend cryptocurrency allocations in client portfolios starting January 2026, without any minimum asset threshold.

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Implications for the Market

Morgan Stanley’s crypto ETF filings are expected to:

• Provide legitimacy to the cryptocurrency ETF market.
• Increase institutional adoption of digital assets.
• Offer clients safer and more regulated alternatives to direct cryptocurrency investment.
• Encourage other major banks to enter the crypto ETF space, accelerating competition and innovation.

As mainstream financial institutions embrace digital assets, ETFs are likely to remain a key bridge for both retail and institutional investors seeking regulated exposure to cryptocurrencies.

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Key Takeaways

• Morgan Stanley files for Bitcoin and Solana ETFs.
• Crypto ETFs offer liquidity, security, and regulatory advantages over direct crypto ownership.
• Institutional adoption is increasing as banks move from custodians to active investment providers.
• Other banks, like Bank of America, are expanding crypto offerings to clients.
• Market legitimacy for digital assets strengthens as major banks participate.