Morgan Stanley Files Spot Bitcoin and Solana ETFs, Marking First Major U.S. Bank Entry into the Crypto‑ETF Market
January 6, 2026 – New York – Morgan Stanley, the Wall Street powerhouse that oversees almost $9 trillion in assets across wealth‑management and institutional accounts, submitted formal applications to the U.S. Securities and Exchange Commission (SEC) for two spot‑based exchange‑traded funds (ETFs): one tracking Bitcoin and the other tracking Solana. The filings, released on the SEC’s EDGAR system, make Morgan Stanley the first large‑scale U.S. bank to seek a direct exposure vehicle for cryptocurrencies.
Why the filing matters
The move has been described by industry observers as a “shocker,” principally because it signals that a traditional banking institution with roughly $8 trillion in advisory assets is ready to compete directly with established ETF sponsors such as BlackRock, Invesco and Fidelity. Bloomberg senior ETF analyst Eric Balchunas noted on X that the bank’s sizeable advisory platform already permits its wealth‑management advisers to allocate to crypto‑related products, so launching a proprietary fund could capture fees that would otherwise go to external providers.
Recent ETF flow dynamics
The timing of Morgan Stanley’s filing coincides with a notable uptick in cash inflows to spot Bitcoin ETFs at the start of 2026. In the first two trading days of the year, investors poured more than $1 billion into Bitcoin funds, reversing the outflow trend that characterized December 2025. By contrast, spot Solana ETFs have attracted modest capital since the beginning of the year—approximately $25 million—though they have posted net inflows almost every day since their debut in October 2025, bringing total assets under $1 billion.
BlackRock continues to dominate the Bitcoin‑ETF segment. Its iShares Bitcoin Trust (IBIT) has amassed nearly $63 billion in cumulative net inflows, representing roughly 108 % of the total Bitcoin‑ETF flow after accounting for a $25 billion net outflow from the Grayscale Bitcoin Trust caused by large‑scale redemptions.
Industry perspective
Timot Lamarre, director of market research at crypto‑custody firm Unchained, outlined three principal ramifications of Morgan Stanley’s entry:
- Legitimacy boost – A major Wall Street bank filing for a spot crypto ETF reinforces the asset class’s credibility among institutional capital allocators.
- New revenue stream – The bank can earn management and distribution fees directly, rather than outsourcing to third‑party ETF issuers.
- Fee pressure – Existing sponsors may confront tighter competition on expense ratios, potentially benefitting investors if costs are driven lower.
Key takeaways
| Insight | Implication |
|---|---|
| First major U.S. bank in the space | Signals a broader acceptance of crypto products within traditional finance. |
| $1 bn+ inflows into Bitcoin ETFs (first two days of 2026) | Indicates renewed investor appetite for spot exposure after a weak December. |
| Solana ETF assets remain under $1 bn | Highlights differing demand dynamics between leading and emerging crypto assets. |
| BlackRock’s IBIT still dominant | Competitive pressure will focus on fee structures and product differentiation. |
| Potential for fee‑based revenue for Morgan Stanley | May encourage other banks or broker‑dealers to consider similar filings. |
Outlook
Morgan Stanley’s filing does not guarantee approval; the SEC continues to scrutinize spot crypto‑ETF proposals for market‑manipulation safeguards and custodial safeguards. Nonetheless, the bank’s involvement elevates the conversation around regulatory clarity and may accelerate the mainstreaming of digital assets. Should the SEC grant the proposals, investors could soon see a “Morgan Stanley Bitcoin” and “Morgan Stanley Solana” ETF appear alongside existing products, offering a new, bank‑backed conduit for exposure to the world’s most prominent cryptocurrencies.
Source: https://thedefiant.io/news/tradfi-and-fintech/morgan-stanley-files-for-spot-btc-and-sol-etfs
