Morgan Stanley, with approximately $9 trillion in assets under management, has filed S-1 registration statements with the U.S. Securities and Exchange Commission (SEC) to launch Bitcoin and Solana ETFs. This move signals a deepening involvement of traditional financial institutions in the cryptocurrency space. The filings, submitted on January 6, 2026, seek approval for the Morgan Stanley Bitcoin Trust and a Solana Trust, marking a significant expansion of Morgan Stanley's digital asset offerings.
The Morgan Stanley Bitcoin Trust aims to provide investors with direct exposure to Bitcoin by holding the cryptocurrency directly. The ETF will track Bitcoin's price, net of fees and expenses, utilizing a designated Bitcoin pricing benchmark derived from activity on major spot exchanges. The trust will operate passively, meaning it will not attempt to trade Bitcoin based on market conditions, and will not employ derivatives or leverage. Shares of the Bitcoin ETF would be created and redeemed in large blocks by authorized participants, with retail investors able to buy and sell shares on the secondary market through brokerage accounts. Morgan Stanley has not yet disclosed the custodian for the Bitcoin Trust or on which exchange it intends to list the ETF.
The Solana Trust will also track the spot price of Solana. However, unlike the Bitcoin Trust, the Solana Trust intends to engage in staking activities, generating yields for investors by staking a portion of its Solana holdings through regulated third-party providers. These staking rewards will accrue to the fund and be reflected in its net asset value. Like the Bitcoin Trust, Morgan Stanley plans to offer in-kind creation and redemption for the Solana ETF. The custodian for the Solana Trust and the exchange on which the fund will be listed have not yet been disclosed.
This move by Morgan Stanley comes after the SEC's approval of spot Bitcoin ETFs in early 2024 and as the firm moves to roll out crypto trading for its retail customers through its E-trade division this year. Jed Finn, Morgan Stanley's head of wealth management, revealed plans last year to list Bitcoin, Ethereum, and Solana first. In October of the previous year, Morgan Stanley also opened Bitcoin investments to all its wealth clients, removing earlier restrictions.
Analysts suggest that the filings could unlock new institutional capital flows into Bitcoin and Solana. The product structure addresses key concerns like custody and compliance, potentially making crypto more appealing to traditional investors. With increased institutional participation, Bitcoin's and Solana's volatility could gradually decrease.
The introduction of these ETFs could provide greater liquidity and security for investors, along with simplified regulatory compliance compared to managing the underlying assets directly. Morgan Stanley's Global Investment Committee has advised wealth management clients to allocate 2% to 4% of their portfolios to crypto, based on risk tolerance, viewing crypto as a maturing speculative asset class akin to "digital gold".
While the S-1 filings are preliminary and subject to SEC approval, they represent a significant step forward in the integration of digital assets into mainstream finance. The market focus will remain on the SEC's approval timelines and whether competitors will replicate this strategy to retain clients in the evolving crypto market.
