Morgan Stanley has taken a significant step into the cryptocurrency arena by submitting a filing to the U.S. Securities and Exchange Commission (SEC) for exchange-traded funds (ETFs) based on the prices of Bitcoin and Solana. This filing, which occurred on Tuesday, January 6, represents the first occasion where a major U.S. bank has sought to issue its own spot cryptocurrency ETFs.
The decision to file for these ETFs is part of Morgan Stanley”s strategy to enhance its footprint in the digital asset market by offering proprietary funds. While notable asset managers such as BlackRock and Fidelity have established dominance in this space following initial approvals two years ago, U.S. banks have typically functioned in roles as custodians or facilitators rather than as issuers, according to a report by Reuters.
Bloomberg”s Senior ETF Analyst, Eric Balchunas, characterized this filing as a tactical move by Morgan Stanley to retain assets within the firm”s ecosystem. Additionally, Bryan Armour, an ETF analyst at Morningstar, pointed out that the entry of a bank into the ETF market lends credibility to the sector and hinted that Morgan Stanley might be looking to shift existing client investments into their own offerings.
The timing of this filing aligns with a notable resurgence in interest surrounding cryptocurrency ETFs at the beginning of 2026. Data from The Defiant indicates that spot Bitcoin ETFs experienced over $1 billion in net inflows during the first two trading days of the year. Meanwhile, Solana ETFs have seen a more modest response, amassing approximately $25 million since the start of January, with total inflows remaining below $1 billion since their launch in October.
This application by Morgan Stanley is part of a broader trend where traditional financial institutions are increasingly incorporating digital assets into their portfolios. Regulatory shifts have also played a crucial role in shaping this landscape; in December, the U.S. Office of the Comptroller of the Currency (OCC) granted banks the authority to serve as intermediaries for cryptocurrency transactions.
As the cryptocurrency sector continues to evolve, Morgan Stanley”s move signals a pivotal moment for banks in their engagement with digital assets, potentially paving the way for further institutional acceptance and innovation in the financial ecosystem.
