Wall Street Heavyweight Morgan Stanley Files for Bitcoin and Solana ETFs

Morgan Stanley Files S-1s for Bitcoin and Solana ETFs

Morgan Stanley has filed registration statements with the SEC seeking approval to launch two spot cryptocurrency ETFs, marking a notable shift from simply offering crypto products to clients toward issuing them directly.

The proposed funds—dubbed the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust—are designed to give investors direct price exposure to the underlying digital assets without relying on derivatives, leverage, or synthetic structures. Both products were registered using Form S-1 filings and are structured as Delaware statutory trusts.

If approved, the ETFs would represent the first time a major U.S. bank has attempted to bring its own spot crypto ETFs to market, rather than distributing products issued by external asset managers. The move comes roughly two years after the SEC first approved spot bitcoin ETFs in early 2024.

Morgan Stanley oversees roughly $1.6 trillion in assets under management (AUM) and serves more than 19 million clients globally, giving the proposed funds a potentially massive distribution footprint. Approval timelines for similar products have historically ranged from three to six months, though the SEC retains discretion to extend reviews.

The Bitcoin Trust would hold bitcoin directly in segregated wallets, split between cold storage and smaller trading balances to facilitate creations and redemptions. The trust’s goal is to track bitcoin’s spot price using a benchmark derived from aggregated data across major exchanges, adjusted for fees and expenses.

The Solana Trust follows a similar structure but introduces an added wrinkle: staking. A portion of the trust’s solana holdings would be staked through a third-party provider, allowing the fund to earn rewards that may be distributed to shareholders, net of commissions and expenses. That feature could attract yield-focused investors but also invites closer regulatory scrutiny.

Neither trust will be registered under the Investment Company Act of 1940, and both will operate as grantor trusts for U.S. tax purposes. That means investors are treated as if they directly own a pro rata share of the underlying assets, with taxable events triggered by sales or, in solana’s case, staking income.

Also read: Bitcoin Smolders Below Resistance: Traders Brace for Fireworks

Custody for both ETFs will be handled by third-party providers employing multi-layer security, including cold storage and hardware security modules. While the custodians carry private insurance, neither fund benefits from FDIC protection, a risk highlighted prominently in the filings.

Morgan Stanley’s latest move builds on years of gradual crypto engagement. In 2024, the firm allowed its financial advisers to recommend spot bitcoin ETFs and later disclosed holdings across multiple internal portfolios. This filing pushes the bank into direct competition with established crypto ETF issuers like Blackrock and Fidelity.

The timing is hardly accidental. Spot bitcoin ETFs logged more than $1.1 billion in inflows during the first two trading days of 2026, pointing to sustained institutional demand. Whether solana earns the same regulatory green light remains less certain, but Morgan Stanley is clearly betting that Wall Street’s crypto appetite is far from satisfied.

FAQ 🏦

• What ETFs is Morgan Stanley proposing?
  The bank filed for a spot bitcoin ETF and a spot solana ETF holding the assets directly.
• Will the solana ETF include staking rewards?
  Yes, a portion of the solana holdings may be staked to generate rewards for the trust.
• When could the ETFs launch?
  SEC approval typically takes three to six months, though timelines can vary.
• Why is this filing significant?
  It marks the first attempt by a major U.S. bank to issue its own spot crypto ETFs.