The line between “TradFi” and “DeFi” just got a lot blurrier.
Morgan Stanley has filed to launch its own Bitcoin and Solana ETFs, signaling a major strategic shift from “passive facilitator” to “active issuer” in the digital asset space.
🚀 THE DRIVERS:
1️⃣ Regulatory Clarity: Under the new administration, the regulatory fog is lifting.
- OCC Green Light: In December, the Office of the Comptroller of the Currency allowed banks to act as intermediaries on crypto transactions.
- The Result: Banks are evolving from cautious custodians to active advisors and product manufacturers.
2️⃣ The “Wirehouse” Validation: This isn’t just another asset manager launching a fund; it’s a G-SIB (Global Systemically Important Bank).
- Morningstar View: Analyst Bryan Armour notes this “adds legitimacy” to the asset class.
- Strategy: Morgan Stanley likely aims to migrate its massive client base (who already own crypto) into proprietary ETFs, giving them instant scale despite being late to the party.
3️⃣ Broader Adoption: The floodgates are opening across the street.
- Morgan Stanley: Expanded crypto access to all clients in October.
- Bank of America: Now allows wealth advisors to recommend crypto allocations without asset thresholds as of January.
💡 ANALYST TAKEAWAY: For years, the big banks watched BlackRock and Fidelity capture the crypto ETF fee pool. Now, with the regulatory handcuffs off, they are entering the arena. The inclusion of Solana alongside Bitcoin is particularly notable, suggesting that institutional comfort is expanding beyond the “digital gold” narrative into smart contract platforms.
👇 Wealth Advisors: Now that the big banks are issuing their own Crypto ETFs, does a 1-5% allocation become standard for the 60/40 portfolio?