Morgan Stanley has applied for regulatory approval to launch exchange-traded funds (ETFs) tied to the prices of Bitcoin and Solana.
This marks the first time a major U.S. bank is seeking to directly issue crypto-linked ETFs and signalling growing mainstream acceptance of digital assets.
According to a Reuters’ report citing filings submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday, the bank plans to offer ETFs tracking the prices of Bitcoin and Solana as it deepens its presence in the cryptocurrency market.
The move comes amid clearer regulatory signals under U.S. President Donald Trump, which have encouraged traditional financial institutions to expand into digital assets once viewed largely as speculative.
This development follows a December decision by the U.S. Office of the Comptroller of the Currency (OCC), which allowed banks to act as intermediaries in crypto transactions, further narrowing the gap between traditional finance and the digital asset ecosystem.
What the filings show
Morgan Stanley’s proposed ETFs would give investors exposure to cryptocurrencies without the need to directly hold or manage digital tokens.
Analysts say this structure appeals to institutional and retail investors seeking greater liquidity, regulatory oversight, and reduced operational risk.
“It’s interesting to see Morgan Stanley move into a commoditised market,” said Bryan Armour, ETF analyst at Morningstar.
“I suspect they want to migrate clients already investing in bitcoin into their ETFs, which could give them a fast start despite their late entry,” he added.
Armour said the entry of a major bank into crypto ETFs lends further legitimacy to the asset class and could encourage other banks to follow.
Since the SEC approved the first U.S.-listed spot Bitcoin ETF two years ago, asset managers have dominated the space.
However, large U.S. banks are now moving beyond custodial roles toward more active participation as advisers and product issuers.
Morgan Stanley expanded access to crypto investments across all client types and account categories in October, while Bank of America followed in January, allowing its wealth advisers to recommend crypto allocations without minimum asset thresholds.
What you should know
Nigeria remains one of the world’s most active crypto markets, driven by high youth participation, cross-border payment needs, and persistent foreign exchange constraints. However, the regulatory environment has evolved significantly in recent years.
In 2021, the Central Bank of Nigeria (CBN) restricted banks from facilitating cryptocurrency transactions, effectively pushing activity to peer-to-peer platforms.
- That stance began to soften in late 2023, when the CBN issued new guidelines permitting banks to open and operate accounts for Virtual Asset Service Providers (VASPs), subject to strict compliance requirements.
- The Securities and Exchange Commission (SEC) Nigeria has also taken steps to regulate the space, introducing rules on digital asset issuance, exchange operations, and custody, while positioning crypto as a sub-sector under its broader capital market framework.
- The SEC in August 2024 granted an Approval-in-Principle to two crypto exchanges, Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.
- Despite this progress, crypto-linked investment products such as ETFs are not yet available in Nigeria’s capital market, and regulators continue to emphasise investor protection, anti-money laundering controls, and systemic risk management.
