Morgan Stanley has officially submitted documentation to the US Securities and Exchange Commission (SEC) to…

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Morgan Stanley has officially submitted documentation to the US Securities and Exchange Commission (SEC) to launch two new cryptocurrency exchange-traded funds (ETFs). These filings represent a significant move by the major investment bank to deepen its involvement with regulated digital asset products. The proposed investment vehicles are specifically identified in the documents as the Morgan Stanley Bitcoin (BTC) Trust and the Morgan Stanley Solana (SOL) Trust. By selecting both the market leader, Bitcoin, and a prominent alternative like Solana, the firm is positioning itself to offer its clients exposure to different segments of the digital token market.

The technical structure of these funds is designed for simplicity and transparency to suit the needs of a broad investor base. According to the SEC filings, both the Bitcoin and Solana trusts will function as passive investment vehicles. This means their primary objective is to hold the digital tokens and track the performance of the underlying assets rather than engaging in active or speculative trading strategies. This approach is intended to provide investors with a direct correlation to the price movements of the tokens. The funds seek to list their shares on public exchanges, marking a clear step in the bank’s strategy to provide accessible cryptocurrency products to its vast network of investors through a regulated framework.

Context

The operational framework for these proposed trusts involves several key entities and specific security measures for asset protection. Morgan Stanley Investment Management is designated as the official sponsor for both the Morgan Stanley Bitcoin (BTC) Trust and the Morgan Stanley Solana (SOL) Trust. To ensure compliance with legal requirements, CSC Delaware Trust Company has been appointed as the Delaware trustee for the products. A major focus of the preliminary documents is the security of the digital assets themselves. Morgan Stanley has detailed a dual-storage strategy for the private keys associated with the funds. A substantial portion of the private keys will be kept in cold storage, an offline method used to prevent unauthorized access, while the remainder will be held in hot wallets to facilitate liquidity and operations.

This initiative follows a significant policy shift regarding how the firm handles digital assets. In October, the wealth manager reportedly enabled its financial advisors to recommend cryptocurrency funds to clients holding individual retirement accounts (IRAs) and 401(k) plans. This was a notable change from previous restrictions that limited access to high-net-worth individuals. Additionally, the funds are structured with strict mandates regarding their token holdings; specifically, they will not speculatively sell the spot tokens they hold. This ensures the vehicles remain purely focused on tracking the price performance of the tokens for the benefit of the shareholders, avoiding active trading risks.

Impact

The introduction of these ETFs could have a profound effect on the liquidity and institutional adoption of Bitcoin and Solana. As of April 2025, Morgan Stanley reported serving over 19 million clients through its extensive wealth management division. By providing these millions of individual and institutional investors with a regulated and familiar investment vehicle, the firm could facilitate a substantial wave of new capital into the cryptocurrency market. The demand for such products has already been evidenced by recent market activity; for instance, spot Bitcoin ETFs attracted $1.1 billion in inflows during just the first two trading days of 2026, indicating a strong appetite for digital asset exposure among investors following the new year.

The inclusion of Solana in this filing is particularly noteworthy as it provides a major institutional pathway for exposure to an ecosystem beyond Bitcoin. Because these trusts function as passive investment vehicles, they offer a way for investors to participate in the growth of these tokens without the technical complexities of managing private keys or digital wallets. The ability of these funds to track the performance of the underlying tokens accurately will be a key factor in their utility for the firm’s 19 million clients. As Morgan Stanley moves to list these shares on public exchanges, it further legitimizes these tokens as standard components of a modern investment portfolio within the traditional financial system.

Outlook

Morgan Stanley’s move to launch its own cryptocurrency trusts is part of a broader trend among major Wall Street institutions to integrate digital assets into their standard service offerings. This filing occurred shortly after Bank of America, the second-largest US bank, began allowing its wealth management advisers to recommend exposure to four different Bitcoin ETFs. With more than 15,000 wealth advisers operating across its Merrill, Bank of America Private Bank, and Merrill Edge platforms, Bank of America’s expansion into crypto-related advice signals a deep commitment to the asset class across the financial sector. This competitive environment is encouraging major firms to ensure they have robust, regulated offerings for their clients.

This trend of institutional adoption has been accelerating for several years. Vanguard, the world’s second-largest asset manager, enabled crypto ETF trading for its clients in December 2025. This followed a landmark precedent set by BlackRock in December 2024, when it became the first large financial institution to recommend a specific Bitcoin allocation of up to 2% to its clients. As Morgan Stanley Investment Management joins these other giants by acting as a sponsor for its own Bitcoin and Solana trusts, the infrastructure for digital asset investment is becoming increasingly sophisticated. The continued integration of these assets by firms like Morgan Stanley and Bank of America suggests that digital tokens are increasingly being treated as permanent fixtures in the global financial landscape, supported by established trustees like CSC Delaware Trust Company.