Morgan Stanley Files for Bitcoin and Solana ETFs; Wall Street Giant Moves In-House
Morgan Stanley files S-1s for proprietary Bitcoin and Solana ETFs, signaling a major shift from distributor to issuer as Solana ETF AUM tops $1 billion.
The Receipt: From Distributor to Issuer
Morgan Stanley, the sixth-largest U.S. bank, filed S-1 registration statements with the SEC on Tuesday for the Morgan Stanley Bitcoin Trust and Morgan Stanley Solana Trust. This is the signal shift market participants have been waiting for: a major Wall Street wirehouse moving from simply distributing BlackRock and Fidelity products to building its own proprietary crypto vehicles.
The market reaction was muted but firm. Bitcoin held steady at $91,270 (-0.7%), while Solana hovered around $137, consolidating recent gains. The filings arrive as Solana ETFs collectively surpassed $1 billion in AUM, a threshold that typically triggers automated allocation models at larger funds.
The filings show Morgan Stanley shifting from simply distributing third-party crypto products to building its own in-house vehicles, signaling a deeper, higher-conviction commitment to digital assets.
The Institutional “Why”
This isn’t just about fees. It’s about control. By launching proprietary trusts, Morgan Stanley can capture the full economics of the trade rather than handing basis points to issuers like iShares. The filings follow a quiet but critical policy pivot in October 2025, when the bank began allowing advisors to recommend crypto allocations of up to 4% in aggressive portfolios. Previously, these advisors were effectively barred from soliciting crypto trades.
Specifics of the Filing:
- Structure: Passive spot execution.
- Custody: The bank plans to use cold storage for the majority of assets, a standard but necessary detail for risk-averse compliance departments.
- Differentiation: The inclusion of a Solana trust alongside Bitcoin signals that the “Ethereum-only” alternative thesis is dead in institutional circles. Solana has graduated to the blue-chip basket.
Competition is already entrenched. With BlackRock and Fidelity dominating flows since early 2024, Morgan Stanley is playing catch-up. However, their advantage lies in distribution: 15,000+ advisors who can now pitch an in-house product directly to high-net-worth clients without friction.
