Morgan Stanley has filed to launch exchange-traded funds (ETFs) linked to Bitcoin and Solana, marking the first time one of the ten largest U.S. banks by total assets has formally moved to offer spot crypto ETFs.
According to a Form S-1 filing submitted Tuesday to the U.S. Securities and Exchange Commission, the proposed funds would track the prices of Bitcoin and Solana, the world’s largest and sixth-largest cryptocurrencies by market capitalisation, respectively.
An ETF allows investors to gain exposure to an asset through a publicly traded security without directly owning or storing the underlying asset. Crypto ETFs have gained popularity among investors seeking lower costs, higher liquidity, and relief from regulatory and custodial complexities.
While the SEC approved the first U.S.-listed Bitcoin ETFs in 2024, most offerings to date have come from asset managers rather than banks. Morgan Stanley’s filing signals a shift by major U.S. financial institutions toward direct participation in crypto investment products.
Large asset managers have already demonstrated the commercial viability of crypto ETFs. In December, BlackRock said its Bitcoin ETF products had become its largest revenue source, with allocations nearing $100 billion and generating more than $245 million in annual fees.
Until now, most U.S. banks have limited their involvement in crypto to custody and client facilitation. Industry analysts say Morgan Stanley’s move reflects growing confidence among banks as regulatory clarity improves.
Regulatory momentum under Trump administration
The shift comes amid a broader regulatory push by the U.S. government to integrate crypto assets into the financial system. President Donald Trump has adopted a notably pro-crypto stance during his second term.
In July 2025, Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, creating a national framework for stablecoins. That same month, Congress approved the Crypto Legal Accountability, Registration and Transparency for Investors Act, which is expected to pass the U.S. Senate later this month. The legislation aims to end years of regulatory uncertainty for crypto firms.
In September 2025, the SEC also revised listing rules for commodity-based ETFs, including those tied to crypto assets, easing the path for new products.
Following those changes, Morgan Stanley expanded client access to crypto investments in October and has now moved to offer ETFs directly. At the start of 2026, Bank of America also began allowing wealth advisers to recommend crypto allocations in client portfolios.
Implications beyond Wall Street
Morgan Stanley’s filing also carries implications for European investors. U.S.-listed ETFs are generally unavailable to EU retail investors due to restrictions under the UCITS framework.
However, Morgan Stanley has been expanding its ETF presence in Europe since 2023 and is building infrastructure to launch EU-compliant products. While Europe has yet to approve a UCITS-compliant spot crypto ETF, firms such as Coinbase are partnering with financial institutions to enable compliant crypto ETF trading under the EU’s Markets in Crypto-Assets (MiCA) rules.
Morgan Stanley’s move underscores a broader shift on Wall Street, where crypto assets are increasingly viewed not as reputational risks but as financial products banks can no longer afford to ignore.
