Morgan Stanley Submits Three Cryptocurrency ETF Applications Within 24 Hours

Author: Felix, PANews

At the beginning of the new year, Morgan Stanley has been particularly active in the cryptocurrency space. Not only has it submitted multiple filings to the U.S. Securities and Exchange Commission (SEC) to launch spot crypto trusts, but it also plans to introduce a digital wallet and support tokenized assets.

As one of the world's largest wealth management companies and the sixth-largest asset manager in the U.S., Morgan Stanley has gradually shifted its approach to the cryptocurrency space in recent years from cautious observation to active engagement. Compared to other banks like JPMorgan and Goldman Sachs, which have been aggressively expanding in the cryptocurrency sector, Morgan Stanley appears to be quickly "catching up" and keeping pace with the crypto wave.

Early caution toward cryptocurrencies

Morgan Stanley initially approached cryptocurrencies with caution, mainly participating indirectly through custody services and distributing third-party products. In 2024, after the U.S. SEC approved the first spot Bitcoin ETFs, crypto assets began to gain mainstream acceptance. However, Morgan Stanley still restricts crypto investments, allowing only high-net-worth clients (with at least $1.5 million in assets) who have an "aggressive" risk tolerance to invest in Bitcoin or Ethereum funds through taxable brokerage accounts.

In 2025, as U.S. regulations eased and the assets under management of crypto ETFs increased, Morgan Stanley adjusted its strategy accordingly. In September 2025, it announced a partnership with crypto infrastructure provider Zerohash, planning to offer retail investors access to crypto trading through the E-Trade platform starting in 2026.

In October 2025, Morgan Stanley fully lifted its restrictions on cryptocurrency investments, allowing all clients—including those with retirement accounts such as IRAs and 401(k)s—to invest in products like spot Bitcoin ETFs through wealth management advisors.

Submit three encrypted ETF applications within 24 hours

As of 2026, Morgan Stanley has accelerated its moves in the cryptocurrency space. On January 6, according to information disclosed by the U.S. SEC, the Wall Street firm, which manages approximately $6.4 trillion in assets, has submitted S-1 filings for both a Bitcoin trust and a Solana trust. The Solana trust also includes staking functionality.

On January 7, Morgan Stanley further expanded its presence in the cryptocurrency product space by submitting an application to the U.S. Securities and Exchange Commission (SEC) for a spot Ethereum ETF. The trust will hold Ethereum and aim to track its price performance, while generating returns by staking a portion of its holdings. The filing states that the trust will reflect these returns through its net asset value, rather than directly distributing staking rewards to shareholders.

Morgan Stanley is not a top issuer in the ETF field, managing around 20 ETFs, but currently only two are issued under the Morgan Stanley name. The Ethereum Trust application indicates that Morgan Stanley has submitted three cryptocurrency ETF applications within just 24 hours, demonstrating the firm's significant emphasis on the cryptocurrency sector.

Plans to launch a digital wallet in the second half of the year.

In addition to its plans to launch BTC, ETH, and SOL ETF trading on its E-Trade platform, Morgan Stanley also plans to introduce its own digital wallet.

On January 8, Morgan Stanley outlined plans regarding digital assets, corporate office operations, and private market investments. Among these, it was mentioned that the company will launch a self-developed digital wallet later this year to support the holding and management of cryptocurrencies. It will also focus on tokenized assets, including blockchain representations of traditional securities (such as stocks and bonds), private equity, and real estate, aiming to deeply integrate cryptocurrencies and tokenized real-world assets into traditional financial services.

Jedd Finn, head of wealth management at Morgan Stanley, said, "This really indicates that the way financial services infrastructure operates is about to change. As our infrastructure evolves over time, we will be better able to integrate traditional finance (TradFi) and the decentralized finance (DeFi) ecosystem."

Not only Morgan Stanley, but also U.S. banks like Bank of America and Citibank, which had previously been relatively absent from the cryptocurrency space, are increasing their presence in 2026. For example, starting from January 2026, Citibank will allow wealth advisors to recommend a 1-4% cryptocurrency allocation to all clients. Citibank also plans to launch cryptocurrency custody services in 2026 (which have been under development for 2-3 years), including the holding of native cryptocurrency tokens.

From a cautious stance to relaxing restrictions, and then to actively embracing it, Morgan Stanley's attitude shift reflects the journey of many traditional financial institutions as cryptocurrencies integrate into mainstream society. In the future, with the approval of ETFs and the full implementation of digital wallets, cryptocurrencies may provide Morgan Stanley with a long-term competitive advantage and accelerate the global financial industry's digital transformation.