Morgan Stanley Becomes First Major U.S. Bank To File For Bitcoin And Solana ETFs

Morgan Stanley has filed for spot Bitcoin and Solana exchange-traded funds, becoming the first major U.S. bank to seek approval for in-house crypto ETFs. The filings, submitted to the U.S. Securities and Exchange Commission on January 6, show the bank plans to offer direct exposure to Bitcoin and Solana prices through regulated products aimed at both retail and institutional investors.

This shows that Morgan Stanley is no longer limiting itself to distributing third-party crypto products. Instead, it is building its own vehicles, using its name, balance sheet reputation, and client base to compete directly in the crypto ETF market.

What Did Morgan Stanley File With The SEC?

Morgan Stanley submitted two separate Form S-1 registration statements to the SEC.

The first filing covers the Morgan Stanley Bitcoin Trust, a spot Bitcoin ETF designed to track the price of Bitcoin, minus fees and expenses. The second filing is for the Morgan Stanley Solana Trust, which aims to track the price of Solana.

Both filings confirm that the funds will hold the underlying assets directly rather than using futures contracts, derivatives, or leverage. This places them in the same category as existing spot crypto ETFs approved over the past two years.

The filings were first reported by Reuters, marking the first time a U.S. global systemically important bank has applied to launch its own crypto ETFs.

How Does The Morgan Stanley Bitcoin ETF Work?

The Morgan Stanley Bitcoin Trust is structured as a passive exchange-traded fund.

It will not attempt to time the market or actively trade Bitcoin. Instead, it will track the price of Bitcoin based on a designated benchmark derived from major spot exchanges.

Key structural details include:

• The fund will hold Bitcoin directly
• No leverage or derivatives will be used
• Net asset value will be calculated daily
• Shares will be created and redeemed in large blocks by authorized participants
• Creations and redemptions may occur in cash or in kind
• Retail investors can trade shares on public exchanges through brokerage accounts

Bitcoin transactions executed in cash will be handled through third-party counterparties selected by the sponsor. Morgan Stanley Investment Management will act as the sponsor of the trust.

The ticker symbol, exchange listing, custody provider, and fee structure have not yet been disclosed.

What Is The Morgan Stanley Solana ETF?

Morgan Stanley has also filed for a Solana-focused ETF, named the Morgan Stanley Solana Trust.

Like the Bitcoin product, the Solana fund is structured to hold the underlying asset directly. It is designed to track the price of Solana without using leverage, derivatives, or active trading strategies.

Solana ETFs are still relatively new in the U.S. market. The first spot Solana ETF began trading in October 2025, led by Bitwise. Since then, additional Solana products have been launched from VanEck, Fidelity, and Grayscale.

According to available market data, Solana ETFs have grown to more than $1 billion in total net assets, following nearly $800 million in cumulative net inflows.

Morgan Stanley’s entry adds a major banking brand to a product category that has so far been dominated by asset managers.

Why Is Morgan Stanley Entering The Crypto ETF Market Now?

Regulatory conditions in the United States have shifted over the past year. Under US President Donald Trump, digital asset policy has moved toward clearer rules for banks and traditional financial firms.

Several developments helped open the door:

• The SEC rescinded SAB 121, easing restrictions on crypto custody
• The Office of the Comptroller of the Currency allowed banks to act as intermediaries for crypto transactions
• Banks gained more clarity around compliance, capital treatment, and operational risk

These changes reduced the barriers that previously kept large banks from offering crypto investment products directly.

Morgan Stanley’s filing comes after years of cautious engagement, mainly limited to client access and custody-related roles.

How Big Is The Spot Bitcoin ETF Market Today?

The spot Bitcoin ETF market has grown rapidly since the first U.S. approvals in January 2024.

According to SoSoValue data:

• Spot Bitcoin ETFs now hold $123 billion in net assets
• This equals about 6.57 percent of Bitcoin’s total market capitalization
• Net inflows have exceeded $1.1 billion since the start of the year

BlackRock’s iShares Bitcoin Trust has led the category. In recent days, it recorded its largest inflows in three months as Bitcoin prices recovered from a holiday slowdown.

Analysts attribute part of the renewed demand to institutional portfolio rebalancing and expectations around continued pro-business policies in the U.S.

What Makes Morgan Stanley’s Move Different?

Most crypto ETFs to date have been launched by asset managers rather than banks.

Morgan Stanley’s filings represent a shift from that pattern. The bank is not partnering with an external crypto issuer or white-label sponsor. Instead, it is using its own name and internal investment management arm.

Bryan Armour, an ETF analyst at Morningstar, described the move as notable despite Morgan Stanley entering a crowded market.

He noted that Morgan Stanley may aim to move existing Bitcoin investors into its own ETFs, giving the products immediate scale despite their late arrival.

A bank entering the crypto ETF space also adds institutional legitimacy that may influence other large banks to follow.

How Does This Fit Into Morgan Stanley’s Broader Crypto Strategy?

Morgan Stanley has gradually expanded its crypto exposure over the past few years.

In October, the bank broadened crypto investment access to all clients and account types. That move removed earlier restrictions that limited crypto exposure to high-net-worth individuals.

Other banks are making similar adjustments. Bank of America recently allowed its wealth advisers to recommend crypto allocations to clients without minimum asset thresholds.

Why Are ETFs Still The Preferred Route For Many Investors?

Many investors prefer ETFs over holding crypto directly.

ETFs offer:

• Regulated market access
• Simplified tax reporting
• Institutional-grade custody
• Liquidity through traditional brokerage accounts
• Lower operational risk for end users

For institutions, ETFs also fit more easily into compliance frameworks and portfolio management systems already in use.

What About Fees And Custody?

Morgan Stanley’s filings outline the structure of the funds but do not yet disclose:

• Management fees
• Custody providers
• Listing exchanges

These details are expected in amended filings as the SEC review process continues.

Custody remains a critical issue. With SAB 121 rescinded, banks now have more flexibility, but many still rely on third-party custodians like Coinbase Custody or BitGo for operational reasons.

Conclusion

Morgan Stanley’s Bitcoin and Solana ETF filings signal a change in how major U.S. banks are approaching crypto. The bank is moving beyond distribution and custody into direct product issuance.

The Bitcoin Trust offers passive, spot exposure backed by direct holdings. The Solana Trust extends that model to a newer digital asset category. Together, they place Morgan Stanley among the growing list of institutions building regulated crypto investment infrastructure.

The filings do not change the crypto market overnight. They confirm that digital assets are becoming part of standard financial product offerings at the highest levels of traditional finance.

Resources

1. Morgan Stanley filing with the US SEC: Form S-1 registration statements to the SEC

2. Report by Reuters: Morgan Stanley files for bitcoin, solana ETFs in digital assets push

3. Report by CoinDesk: Morgan Stanley files for bitcoin and solana ETFs, deepening crypto push

4. Report by Euro News: Morgan Stanley files to launch Bitcoin and Solana ETFs as Wall Street embraces crypto

5. SoSoValue portal: Spot Bitcoin and Solana ETF data