Morgan Stanley Expands Crypto Offerings with Bitcoin and Solana ETF Filings

Morgan Stanley has officially filed registration statements for Bitcoin and Solana exchange-traded funds (ETFs), signaling another significant move into the cryptocurrency space. The filings, submitted to the U.S. Securities and Exchange Commission (SEC), outline plans for two separate Trusts that aim to provide institutional investors with spot exposure to both digital assets.

The Bitcoin Trust will track the price of Bitcoin and offer in-kind creation and redemption, a mechanism designed to reduce tracking error and improve tax efficiency. Details about the ETF’s listing exchange and custody provider have not been disclosed in the filing.

Similarly, the Solana Trust will mirror the price movement of Solana and include staking capabilities. By staking SOL, the fund aims to generate additional yield for investors. This strategy reflects a growing interest among asset managers in diversifying fund income sources in the cryptocurrency sector.

Institutional Access and Advisory Integration

This development comes as Morgan Stanley continues to expand its crypto offerings across multiple investor segments. The firm had previously opened Bitcoin access to all its wealth clients and revealed plans to introduce crypto trading through its E*Trade division. The new ETFs could be integrated into Morgan Stanley’s advisory platform, which manages nearly $9 trillion in assets.

Industry analysts believe that these filings align with the company’s strategy of providing clients with direct access to regulated crypto investment vehicles without relying on external ETF issuers.

Competitive Position Among Asset Managers

With this move, Morgan Stanley is expected to join other traditional financial institutions such as BlackRock, Bitwise, and Franklin Templeton in the competitive crypto ETF space. The current market comprises 12 approved spot Bitcoin ETFs, which collectively manage over $123 billion in assets, representing approximately 7% of Bitcoin’s total market capitalization.

In the Solana ETF space, Morgan Stanley is positioning itself to become the ninth issuer. Since their launch in October last year, Solana ETFs have accumulated $1.09 billion in assets, accounting for 1.4% of the token’s market value.