Morgan Stanley has asked U.S. regulators to approve two new exchange-traded funds that would track the prices of Bitcoin and Solana. The move would make the $1.8 trillion wealth management giant one of the first major U.S. banks to sponsor spot crypto ETFs rather than simply distribute or custody them.
SEC filings dated Jan. 6, 2026 show the bank’s investment-management arm is seeking to register the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust, both structured as passive vehicles designed to mirror the performance of their underlying tokens, net of fees and expenses.
What Morgan Stanley filed — and what stands out
In its preliminary prospectus, Morgan Stanley describes the Bitcoin vehicle as an exchange-traded fund expected to list on a U.S. exchange (not yet named) and designed solely to track Bitcoin’s price through a yet-to-be-named benchmark, without leverage or derivatives. The filing lists Morgan Stanley Investment Management Inc.—a wholly owned subsidiary of the bank—as sponsor.
The Solana filing is similar in structure but includes an added feature that has been a flashpoint in U.S. crypto regulation: staking.
Morgan Stanley’s Solana trust would aim to track SOL’s price and “reflect rewards from staking a portion of the Trust’s SOL,” using one or more third-party staking service providers and making distributions “at least quarterly” when required under current IRS guidance, according to the prospectus.
That matters because U.S.-listed spot Ether ETFs debuted without staking, after regulators pushed issuers to strip staking language from filings in 2024—leaving investors with price exposure but no native yield.
Why a big-bank entry is a milestone
Crypto ETFs in the U.S. have largely been the domain of asset managers and specialist issuers. Morgan Stanley’s move is notable because a globally systemically important bank brings a different kind of distribution engine and brand signaling to the category—particularly through wealth-management channels that have traditionally been cautious on direct crypto exposure.
Morgan Stanley has already been expanding client access: reports in late 2025 said the firm broadened availability of crypto investment products across more client types and account categories.
And it’s not the only Wall Street institution moving. Bank of America recently began allowing wealth advisers to recommend crypto allocations in client portfolios. The firm is reportedly endorsing a 1%-4% allocation to digital assets for clients of its Merrill, Bank of America Private Bank, and Merrill Edge platforms. This reflects a broader shift from “access on request” toward more formalized guidance and product frameworks.
A quick primer: what a crypto ETF is — and why investors use it
A spot crypto ETF is a listed fund that generally holds the underlying token in custody and issues shares that trade like a stock. For investors, the appeal is straightforward:
- Convenience: buy/sell in a regular brokerage account (including many retirement wrappers, depending on platform rules).
- Operational simplicity: no private keys, wallets, or on-chain transaction mechanics.
- Perceived safeguards: regulated disclosures, standardized reporting, and institutional custody arrangements.
The wrapper has also become massive in scale. As of Jan. 5, 2026, U.S. spot Bitcoin ETFs collectively held about 1.30 million BTC worth roughly $122.1 billion, according to Bitbo US Bitcoin ETF AUM tracker.
The regulatory backdrop: rules are loosening — but approvals still matter
Morgan Stanley’s filing lands in an environment where U.S. regulators have been reshaping the plumbing for crypto ETFs and bank participation.
In September 2025, the SEC approved rules enabling exchanges to list certain spot crypto ETPs using generic listing standards—a move the agency framed as an expansion of existing “commodity-based trust shares” frameworks to cover additional crypto assets.
In December 2025, the Office of the Comptroller of the Currency issued guidance permitting national banks to engage in specified crypto-asset activities—including custody and certain transaction services—so long as they do so in a safe-and-sound manner and with appropriate risk controls.
Those shifts have helped fuel a broader wave of ETF experimentation—particularly for tokens beyond Bitcoin.
One example: Reuters reported that Bitwise launched the first U.S. spot Solana ETF (ticker: BSOL) on Oct. 28, 2025, exploiting an unusual window and a regulatory workaround that allowed it to come to market during an SEC shutdown—sparking a competitive scramble among issuers.
Morgan Stanley’s own Solana prospectus explicitly flags intensifying competition and notes that, in the fourth quarter of 2025, the SEC approved several SOL products—suggesting the bank is positioning to compete in a category that has already started to take shape.
The big question: will staking inside an ETF clear the bar?
The Solana product’s staking design is likely to attract particular scrutiny because staking introduces:
- Operational risk (validator uptime, slashing events, counterparty reliance on staking providers)
- Disclosure complexity (how rewards flow to NAV vs. distributions)
- Tax uncertainty (timing and character of staking income has been debated, and prospectuses often build in flexibility around IRS guidance)
Morgan Stanley’s filing says it will select staking providers based on performance and “slashing history,” and it reserves the right to modify how it engages in staking depending on regulatory and tax risk.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Editorial Policy.
AI Disclaimer: Parts of this article were drafted/ researched with the assistance of AI tools and subsequently reviewed, edited, and verified by the author and our editorial team to ensure accuracy and journalistic integrity. The final version reflects human editorial judgment and fact-checking. AI Policy.
