- Morgan Stanley files Bitcoin and Solana trust, moving beyond custody into crypto ETFs.
- Regulatory clarity boosts banks’ confidence to offer direct crypto investment products.
- ETFs attract investors seeking crypto exposure without managing wallets or private keys.
Morgan Stanley has taken another step toward expanding its cryptocurrency footprint by filing a new Form S-1 tied to a Bitcoin and Solana trust. These filing signals a broader effort by the Wall Street bank to move beyond custody services and into direct investment products linked to digital assets. Consequently, the move places Morgan Stanley among the first major U.S. banks to seek approval for exchange-traded funds tracking cryptocurrency prices.
According to regulatory disclosures, Morgan Stanley aims to launch ETFs linked to both Bitcoin and Solana. The strategy reflects growing confidence among large financial institutions as U.S. oversight of digital assets becomes clearer. Moreover, banks now see regulated crypto products as a way to meet rising client demand without direct exposure to token management risks.
Regulatory Shifts Reshape Bank Strategy
Regulatory changes have played a central role in reshaping how banks approach crypto markets. Under the administration of President Donald Trump, policymakers have signaled a more defined framework for digital assets. Hence, mainstream finance firms have gained greater confidence to expand offerings once considered too speculative.
Additionally, the Office of the Comptroller of the Currency allowed banks to act as intermediaries for crypto transactions in December. This decision narrowed the divide between traditional banking and blockchain-based markets. Significantly, these changes encourage banks to design products that align with existing compliance standards.
The U.S. Securities and Exchange Commission has also updated listing rules for spot crypto ETFs. Consequently, these revisions have opened the door for a wider range of digital asset products. Asset managers moved quickly, while banks now follow with more active roles.
Growing Demand for ETF-Based Crypto Access
Investors increasingly favor ETFs as a gateway to cryptocurrencies. These products offer liquidity, operational simplicity, and familiar safeguards. Moreover, ETFs allow investors to gain price exposure without handling private keys or wallets.
Over the past two years, numerous institutions have launched spot Bitcoin ETFs. However, most U.S. banks previously limited involvement to custodial services. That stance has begun to change.
In October, Morgan Stanley expanded crypto investment access across all client accounts. Besides, this step marked a shift toward advisory participation.
Other banks have adopted similar strategies. Bank of America recently allowed wealth advisers to recommend crypto allocations to clients. Consequently, competition among banks continues to intensify as digital assets gain acceptance within traditional portfolios.
Related: Morgan Stanley Now Recommends 4% Crypto Allocation for Growth Portfolios
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