Morgan Stanley seeks SEC approval to become first major U.S. bank to launch crypto price ETFs

Morgan Stanley is stepping into new territory for U.S. banking. In filings made public Tuesday, the Wall Street giant asked the U.S. Securities and Exchange Commission for approval to launch exchange-traded funds tied directly to cryptocurrency prices. If cleared, the move would make Morgan Stanley the first major U.S. bank to offer ETFs linked to tokens themselves rather than acting only as a custodian.

The proposed products would track the price of Bitcoin and Solana, signaling a deeper push into digital assets by a firm long known for its cautious posture. Large banks have spent years keeping crypto activity at arm’s length. This filing suggests that distance is shrinking.

“The bank is looking to launch ETFs tied to the price of cryptocurrencies Bitcoin and Solana,” Reuters reported, citing the SEC filings.

Morgan Stanley Eyes Bitcoin and Solana ETFs Amid Growing Regulatory Clarity

The shift comes as Washington sends clearer signals to financial institutions. Under President Donald Trump, regulators have taken steps that ease friction between traditional finance and digital assets. In December, the Office of the Comptroller of the Currency permitted banks to act as intermediaries for crypto transactions. The move narrowed a divide that once kept banks from direct participation.

Investor demand plays a role here. Many prefer to gain crypto exposure through ETFs rather than holding tokens directly. Funds offer liquidity, familiar tax treatment, and regulatory guardrails that appeal to wealth clients. Since the SEC approved the first U.S.-listed spot bitcoin ETF two years ago, asset managers have rushed in with competing products. Big banks watched from the sidelines.

That stance is changing. Morgan Stanley has been widening access to crypto investments inside its wealth platform. In October, the firm expanded crypto availability across client accounts, according to media reports. Rivals are following. Bank of America began allowing wealth advisers to recommend crypto allocations starting in January, removing minimum asset thresholds.

The SEC has helped clear the runway. Last year, the agency revised listing rules for spot crypto ETFs, creating opportunities for more issuers and structures. What started with asset managers is now drawing banks into a more active role, one that extends beyond custody to advice and product creation.

For Morgan Stanley, the filing marks a strategic pivot. The bank appears ready to compete where clients already are, meeting demand rather than deflecting it. Crypto may have entered finance as a fringe asset. This filing suggests it no longer sits there.