- Morgan Stanley filed with the SEC to launch Bitcoin and Solana ETF-style trust products, marking its first direct fund push into major crypto assets.
- It is expanding crypto investing access to all wealth-management clients, including retirement accounts, eliminating prior eligibility thresholds.
- Through a Zerohash partnership, it plans to add retail trading of BTC, ETH and SOL on E*Trade in the first half of 2026 alongside new wallet and risk tools.
- Clearer U.S. regulation and intensifying competition from banks like JPMorgan, Goldman Sachs and Citigroup are accelerating Wall Street's broader shift into digital assets.
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Strategic shift & product expansion
Morgan Stanley is moving beyond serving only high-net-worth clients in the crypto space. With filings for the Bitcoin Trust and Solana Trust, the bank is laying groundwork to offer institutional-grade, regulated ETF exposure in digital assets for broader client segments. At the same time, it opened crypto investments to all wealth management clients, including via retirement accounts as of October 15, 2025, thereby eliminating previous eligibility constraints tied to client assets, risk tolerance, or account type.
Infrastructure & trading access
Morgan Stanley has formalized a partnership with Zerohash to provide trading, custody, and settlement services for Bitcoin, Ethereum, and Solana for retail clients on its E*Trade platform in the first half of 2026. Internally, they are building wallet capabilities, unified dashboards for traditional and digital assets, and risk-monitoring tools to support a more seamless and compliant ecosystem.
Regulatory tailwinds & competitive pressure
Regulatory developments such as the GENIUS Act, which strengthens oversight of stablecoins, have reduced uncertainty and lowered legal risk for banks entering the digital asset space. Peers like JPMorgan (with tokenized money-market funds), Goldman Sachs, and Citigroup are either offering or expanding crypto services. This creates competitive imperative for Morgan Stanley not only to participate but also to lead in certain segments.
Risks, open questions & trade-offs
Key challenges include market volatility inherent in crypto, custody/security risks, potential regulatory reversals, and reputational risk. Questions remain about fee structures, how portfolios will be allocated, how risk controls operate, how the bank will price and protect smaller clients, and how the trust/ETF filings will be approved. Also, while filings for Bitcoin and Solana ETFs signal interest, many ETFs already exist, so differentiation and margin pressures may be material.
Strategic implications
1. Morgan Stanley is re-positioning itself to capture a new revenue stream from crypto ETFs and direct trading, rather than just advisory fees or indirect exposure.
2. By offering crypto access broadly, it’s aligning with client demand, but must manage the trade-off between inclusivity and protecting less sophisticated investors.
3. Infrastructure investment (wallet, custody, Zerohash tie-ups) suggests this isn’t a tactical move but a long-term bet on digital asset ecosystems becoming embedded in wealth management.
4. Competitive leaders in Wall Street may accelerate product offerings, making first-mover advantages critical, yet they risk being crowded out if differentiation is weak.
Open questions
• What fee structures will Morgan Stanley adopt for these new ETFs/trusts relative to peers?
• How will the SEC respond to filings, particularly for Solana Trust—whether it treats altcoin-based products differently.
• How will Morgan Stanley enforce suitability, risk limits, and disclosures especially for retirement and smaller accounts.
• What is the business case outlook—expected AUM, revenue contributions, margin pressures—in crypto versus traditional asset classes.
• How will macro/regulatory risks (e.g., changes in stablecoin laws, crypto tax/treatment, banking regulation) shape the realization of this strategy.
Supporting Notes
- Morgan Stanley filed paperwork with the U.S. SEC on January 6, 2026, to launch separate ETFs/trusts for Bitcoin and Solana.
- As of October 15, 2025, Morgan Stanley made crypto investment options available to all its wealth management clients, including retirement account holders; previously restricted to clients with at least $1.5 million in assets and aggressive risk profiles.
- Morgan Stanley partnered with Zerohash to enable trading of Bitcoin, Ether, and Solana through E*Trade, starting in the first half of 2026; this covers trading, custody, and settlement services.
- The bank is developing wallet solutions and unified asset dashboards to integrate digital asset products with traditional investments.
- The GENIUS Act, passed in summer 2025, introduced clearer regulatory framework for stablecoins, boosting confidence in digital asset product launches.
- Peers are also advancing: JPMorgan launched a tokenized money-market fund (MONY), Goldman Sachs and BNY Mellon launched tokenized money-market/share-based offerings, and Citigroup is preparing a crypto custody service.
- Market size data show over $150 billion is already invested across about 130 crypto-related funds in the U.S.; much of that in Bitcoin-specific products.
- Morgan Stanley’s wealth and investment management business is approximately $8.2 trillion, illustrating the scale of client base to which these new crypto offerings can be rolled out.