Author: Felix, PANews
At the beginning of the new year, Morgan Stanley has been particularly active in the crypto space. Not only has it filed documents with the U.S. Securities and Exchange Commission (SEC) to apply for the launch of a spot crypto trust product, but it also plans to launch a digital wallet and support tokenized assets.
As one of the world's largest wealth management companies and the sixth largest bank in the U.S. by assets under management, Morgan Stanley's approach to the crypto space has gradually shifted from cautious observation to active embrace in recent years. Compared to other banks such as JPMorgan Chase and Goldman Sachs' active involvement in cryptocurrencies, Morgan Stanley seems to be quickly "catching up," leapfrogging the crypto wave.
Early Cautious Attitude Towards Cryptocurrencies
Morgan Stanley initially adopted a cautious attitude towards cryptocurrencies, primarily participating indirectly through custody services and the distribution of third-party products.
In 2024, after the U.S. SEC approved the first batch of spot Bitcoin ETFs, crypto assets began to become mainstream. However, Morgan Stanley still restricted crypto investments, allowing only high-net-worth clients (with assets of at least $1.5 million) and those with an "aggressive" risk tolerance to invest in Bitcoin or Ethereum funds through taxable brokerage accounts. In 2025, with the easing of U.S. regulations and the increase in the size of crypto ETF assets, Morgan Stanley adjusted its strategy. In September 2025, it announced a partnership with crypto infrastructure provider Zerohash, planning to offer crypto trading to retail investors through the E-Trade platform in 2026. In October 2025, Morgan Stanley completely lifted restrictions on crypto investments, allowing all clients (including retirement accounts such as IRAs and 401(k)) to invest in products such as spot Bitcoin ETFs through wealth management advisors. Morgan Stanley has filed three cryptocurrency ETF applications within 24 hours as 2026 approaches. On January 6th, according to information released by the U.S. Securities and Exchange Commission (SEC), the Wall Street firm managing approximately $6.4 trillion in assets filed S-1 documents for a Bitcoin Trust and a Solana Trust, with the Solana Trust including a staking feature. On January 7th, Morgan Stanley further expanded its presence in the cryptocurrency market. It filed an application with the SEC to launch a spot Ethereum ETF. This trust will hold Ethereum and aim to track its price movements, while generating returns through staking a portion of the fund's holdings. The filing states that the trust will reflect these returns through its net asset value, rather than directly distributing staking returns to shareholders. Morgan Stanley is not a top issuer in the ETF space, managing approximately 20 ETFs, but only two are currently issued under the Morgan Stanley name. The Ethereum Trust application means that Morgan Stanley submitted three applications for crypto ETFs in just 24 hours, demonstrating its focus on the crypto sector. In addition to planning to launch BTC, ETH, and SOL ETF trading on its E-Trade platform, Morgan Stanley also plans to launch its own digital wallet. On January 8th, Morgan Stanley outlined its plans for investments in digital assets, corporate office business, and the private market. The report mentions that a self-developed digital wallet will be launched later this year, supporting cryptocurrency holding and management. It also focuses on tokenized assets, including blockchain representations of traditional securities (such as stocks and bonds), private equity, and real estate, aiming to deeply integrate cryptocurrency and physical asset tokenization into traditional financial services. Jedd Finn, Head of Wealth Management at Morgan Stanley, stated, "This really indicates that the way financial services infrastructure operates is about to change. Over time, as our infrastructure develops, we will be able to better integrate the traditional finance (TradFi) and decentralized finance (DeFi) ecosystems." Not only Morgan Stanley, but also Bank of America and Citibank, which previously had a relatively weak presence in the crypto space, are increasing their investment in 2026. For example, starting in January 2026, Citibank will allow wealth advisors to recommend 1-4% crypto allocations to all clients. Citibank also plans to launch a crypto custody service in 2026 (which has been under development for 2-3 years), including holding native crypto tokens. From a cautious approach to relaxing restrictions, and then to actively embracing cryptocurrencies, Morgan Stanley's shift in attitude as cryptocurrencies integrate into mainstream society is a microcosm of the changes experienced by many traditional financial institutions. In the future, with the approval of ETFs and the full rollout of digital wallets, cryptocurrencies may provide Morgan Stanley with a long-term competitive advantage and accelerate the digital transformation of global finance.
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