U.S. banking giant takes the first shot! Morgan Stanley applies for Bitcoin and Solana spot ETFs for the first time

Morgan Stanley Breaks New Ground in the U.S. Banking Industry by Applying for Spot Bitcoin and Solana ETFs with Staking Rewards. Benefiting from relaxed regulations and market demand, the total trading volume of crypto ETFs has surpassed $2 trillion.

Morgan Stanley Applies for Spot Bitcoin and Solana ETFs for the First Time

The Wall Street giant Morgan Stanley, managing assets worth up to $6.4 trillion, officially submitted applications to the U.S. Securities and Exchange Commission (SEC) yesterday (1/6) to launch spot Bitcoin ($BTC) and Solana ($SOL) ETFs. This marks the first such case among major U.S. banks, with Morgan Stanley’s Solana ETF also including staking functionality, allowing investors to share in staking rewards.

Image source: SEC documents Morgan Stanley Applies for Spot Bitcoin and Solana ETFs for the First Time

In recent years, more companies and projects have applied to launch cryptocurrency ETFs. In September 2025, the SEC introduced the “General Listing Standards” for cryptocurrency exchange-traded products.

This new regulation allows qualified funds to bypass the previously lengthy process of individual “19b-4” rule change applications, which could take up to 240 days, significantly lowering the entry barriers for traditional financial institutions.

In December last year, the U.S. Office of the Comptroller of the Currency (OCC) also permitted banks to act as intermediaries in cryptocurrency transactions, gradually bridging the gap between traditional finance and digital assets.

Related Reading:
OCC Approves Crypto Business, Banks Can Facilitate Risk-Free Matching, Accelerating Crypto Integration into Mainstream Finance

Regulatory Relaxation Boosts Confidence, Analysts Favor First-Mover Advantage

Many investors prefer holding cryptocurrencies through ETFs because, compared to direct asset management, ETFs offer higher liquidity, security, and simplified regulatory compliance procedures.

Regarding Morgan Stanley’s strategy, Morningstar ETF analyst Bryan Armour told Reuters, the bank aims to shift clients investing in Bitcoin to its own ETFs. Although the timing is later, leveraging its large client base could give it a quick start advantage.

Armour emphasized that Morgan Stanley’s entry adds legitimacy to the crypto ETF market, and more institutions are likely to follow suit in the future.

Cryptocurrency Spot ETF Trading Volume Surpasses $2 Trillion

The crypto ETF market is growing rapidly. Data compiled by The Block shows that the total trading volume of U.S. cryptocurrency spot ETFs has exceeded $2 trillion.

It took over a year for the market to cross the first $1 trillion mark, but only about eight months to add the next $1 trillion, indicating a rapid increase in trading activity and liquidity.

Image source: The Block Cumulative Trading Volume of U.S. Cryptocurrency Spot ETFs

Statistics show that the assets under management (AUM) of Bitcoin spot ETFs alone have risen to over $123.5 billion, accounting for approximately 6.6% of Bitcoin’s total market capitalization.

Morgan Stanley Opens Client Access, U.S. Banks Follow Suit

Morgan Stanley has continued expanding its cryptocurrency investment business in recent years. Last year, it set the maximum allocation for digital assets in opportunistic investment portfolios at 4%, aligning with internal guidelines of peers like BlackRock, and opened access to cryptocurrency holdings for all client accounts, including retirement plans.

Bank of America has adopted a similar approach, allowing financial advisors to recommend cryptocurrency allocations in client portfolios starting January this year, without any asset thresholds.

From the moves of Morgan Stanley and Bank of America, it’s clear that as the market matures and institutional participation increases, Wall Street is actively adjusting its product strategies to meet the growing demand for regulated digital assets.

Related Reading:
Bloomberg: JPMorgan Evaluates Offering Cryptocurrency Trading! Wall Street Institutions Accelerate Entry