Morgan Stanley Pushes Past Crypto Blues to Build its First Bitcoin ETF

Morgan Stanley has become the first big US bank to seek Securities and Exchange Commission approval for crypto ETFs, products it designed to track the prices of bitcoin and solana. 

The latest move by the Wall Street firm, which opened access to crypto funds for all its clients last fall after previously making them available only to high-net-worth investors, comes as the finance industry expands crypto offerings despite tepid interest from retail investors burned by a selloff last fall.

New Year, New ETF

It’s been two years since spot bitcoin ETFs were first listed in the US, and major financial companies including BlackRock and Fidelity have rolled out their own products since. Banks, however, have hung back from ETFs, instead directing their advisors to offer clients options from other companies. Bank of America yesterday started letting its advisors do just that.

But Morgan Stanley’s move could tap into a rapidly growing opportunity: Bitcoin ETFs notched $697 million worth of inflows Monday, their biggest gain since early October. That’s before money started flowing out as the price of bitcoin slipped, dragging investor optimism down with it. 

This year, so far, seems like a turnaround:

• The first two trading days of 2026 have seen $1.2 billion in inflows into bitcoin ETFs, with nine of the US’s 12 funds in the green on Monday. More than half of Monday’s inflows entered BlackRock’s bitcoin ETF and a sizable chunk flowed into Fidelity’s. 
• And 2026 is off to a strong start for the wider crypto world, not just bitcoin. Spot ethereum ETFs notched $168 million in inflows on Monday, while investors also boosted ETFs tracking altcoins including solana and XRP. 

Cautiously Optimistic: As money poured into bitcoin ETFs, the price of bitcoin also rose, climbing about 6% for the year as of yesterday afternoon. While retail traders still seem hesitant to dive all the way back into crypto, ETFs offer an investing option with a degree of separation from the volatile assets. And institutional interest, which judging from recent news is still high, could signal brighter long-term prospects for the sector.