Morgan Stanley has taken a decisive step into the regulated crypto investment market, filing its first-ever cryptocurrency exchange-traded funds with U.S. regulators.
The investment bank submitted applications to launch a spot Bitcoin ETF and a spot Solana ETF, marking a significant expansion of its digital asset strategy.
The filings, submitted to the U.S. Securities and Exchange Commission (SEC), propose the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust, both designed to track the spot prices of their respective cryptocurrencies. If approved, the products would place Morgan Stanley alongside major crypto ETF issuers such as BlackRock and Fidelity, further tightening the link between traditional finance and digital assets.
The move underscores growing institutional confidence in crypto markets, particularly as spot ETFs continue to reshape how investors gain exposure to blockchain-based assets.
According to the filings, both trusts are structured to mirror the spot Bitcoin ETF frameworks already approved by U.S. regulators. The products are designed to provide indirect exposure to cryptocurrency prices without requiring investors to hold the underlying assets themselves.
Shares of the trusts are expected to trade on a regulated exchange and, notably, do not fall under the Investment Company Act of 1940. This structure aligns with the design used by previously approved spot Bitcoin ETFs, helping reduce regulatory friction and maintain consistency with existing products.
The approach reflects lessons learned from earlier ETF approvals. By closely following established regulatory pathways, Morgan Stanley positions its filings to meet SEC expectations while expanding its crypto offerings beyond traditional assets.
The Solana ETF filing introduces a notable distinction. Morgan Stanley Investment Management has filed an S-1 registration statement for a Solana Trust structured as a grantor trust, which will hold $SOL tokens directly to provide price exposure.
Crucially, the filing states that the trust may stake $SOL on the Solana network, allowing staking rewards to accrue to the trust. This feature adds a yield component that goes beyond pure price tracking, reflecting Solana’s proof-of-stake architecture and the evolving expectations of institutional crypto investors.
At the same time, the filing outlines multiple risks associated with staking. These include unbonding periods that may limit liquidity, potential network forks, and operational risks tied to validator performance. The disclosure signals a more nuanced regulatory approach to staking-based products, acknowledging both opportunity and complexity.
The inclusion of staking rewards sets the Solana Trust apart from traditional spot Bitcoin ETFs, which do not generate yield. It also highlights how ETF structures may evolve as regulators become more comfortable with diverse blockchain mechanics.
Morgan Stanley filed the Solana Trust alongside a separate Bitcoin Trust, signaling a broader strategic push rather than a one-off experiment. By pairing Bitcoin and Solana in its first crypto ETF filings, the bank demonstrates intent to expand regulated crypto access beyond the two dominant assets of previous cycles: Bitcoin and Ethereum.
This dual filing reflects shifting market dynamics. Bitcoin remains the benchmark digital asset, while Solana has emerged as a high-throughput blockchain with growing adoption in decentralized finance, payments, and consumer applications.
Market analysts quickly highlighted the significance of the move. Bloomberg ETF analyst Eric Balchunas noted the filing as Morgan Stanley’s first crypto ETF entry, emphasizing its implications for institutional participation in alternative layer-1 assets.
The decision to include Solana suggests that issuers are increasingly confident regulators may be willing to consider spot ETFs tied to assets beyond Bitcoin, provided they follow established trust-based structures.
The Solana ecosystem also acknowledged the filing, framing it as another step toward broader institutional recognition. The network has seen rising interest from asset managers, developers, and enterprises seeking faster transaction speeds and lower costs than earlier blockchains.
By filing a Solana ETF that incorporates staking mechanics, Morgan Stanley reinforces Solana’s positioning as more than a speculative asset. The structure presents $SOL as a network-backed token capable of generating on-chain rewards, aligning with how institutions evaluate yield-bearing assets.
Solana’s official channels highlighted the filing as evidence of continued institutional momentum around the network and its expanding role within regulated finance.
This growing recognition comes as traditional asset managers explore ways to diversify crypto exposure without relying solely on Bitcoin or Ethereum products.
Morgan Stanley’s filings reflect a broader evolution in the crypto ETF landscape. What began as a push for Bitcoin exposure has expanded into a more diversified suite of regulated digital asset products.
The bank’s entry carries symbolic weight. As one of the world’s largest financial institutions, Morgan Stanley’s participation signals that crypto ETFs are no longer niche products reserved for early adopters. They are becoming standard components of institutional portfolios.
If approved, the Bitcoin and Solana trusts would strengthen Morgan Stanley’s presence in digital assets and accelerate competition among major issuers. The move also raises expectations that additional layer-1 and staking-enabled ETFs could follow.
Ultimately, the filings underscore a clear trend. Traditional finance is not retreating from crypto. It is formalizing its role within it, one ETF at a time.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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