Morgan Stanley Makes a Major Entry: Bitcoin and Solana ETF Applications Spark Capital Inflow Expectations

Morgan Stanley officially submitted documents to the U.S. Securities and Exchange Commission on January 6, 2026, to launch a spot Bitcoin trust and a spot Solana trust.

This Wall Street giant becomes the first among the top ten U.S. banks to take this step, marking a new phase of traditional finance’s acceptance of cryptocurrencies.

01 Institutional Entry

Morgan Stanley’s move is not an isolated event; it occurs against the backdrop of a fundamental shift in Wall Street’s attitude toward cryptocurrencies.

As one of the top ten U.S. banks by total assets, Morgan Stanley’s filing of Form S-1 to launch Bitcoin and Solana ETFs is a first among banks of this level.

This action is driven by a widespread consensus on Wall Street that “it’s no longer too late.” Competitors like Goldman Sachs, JPMorgan Chase, and Citigroup have already been strengthening their digital asset divisions.

Even the traditionally conservative Vanguard allowed clients to trade cryptocurrency ETFs last December. Recently, Bank of America also adjusted its policies to enable its wealth advisors to recommend Bitcoin ETF allocations.

02 Product Innovation

According to the application, Morgan Stanley’s Bitcoin trust will hold Bitcoin directly, adopting a passive management strategy that will not actively trade based on market conditions. The Solana trust includes an innovative feature—staking.

This means the product not only tracks Solana’s price but also uses part of its holdings to support the blockchain network and earn rewards. This differentiated strategy is clearly aimed at attracting investors seeking additional returns.

Notably, Solana is currently the sixth-largest digital currency by market cap, with its spot ETF product recording net inflows of $2.29 million by December 31, 2025.

03 Market Reaction

The cryptocurrency market started 2026 strongly, creating favorable conditions for Morgan Stanley’s entry.

On January 5, U.S. spot Bitcoin ETFs experienced the largest single-day inflow since October 7, 2025, with net inflows reaching $697 million. BlackRock’s IBIT product led this trend, attracting $372 million in a single day.

Meanwhile, spot Ethereum ETFs added over $168 million in new net assets. The simultaneous demand for the two largest cryptocurrencies indicates a broader risk appetite in the digital asset class at the start of the new year.

On January 6, Bitcoin’s trading price surged to around $94,700, up over 7% since January 1. Ethereum rose nearly 2%, briefly surpassing $3,300, with a total increase of about 9%. Solana performed particularly well, soaring nearly 13% in one day to $143, with a weekly increase close to 29%.

04 Regulatory Momentum

Current regulatory shifts in the U.S. have cleared obstacles for Wall Street institutions to enter the cryptocurrency space.

In July 2025, Trump signed the “Genius Act,” which established a comprehensive regulatory framework for stablecoins.

In the same month, the “Crypto Legislation Accountability, Registration, and Investor Transparency Act” (CLARITY Act) was passed by Congress and is expected to be approved by the Senate on January 15, 2026.

In September 2025, the SEC revised listing rules for new commodity ETFs, including those involving crypto assets, paving the way for more financial products to enter the market.

05 Capital Flows

Senior ETF strategist Todd Sohn of Strategas Securities pointed out, “For issuers, the scale of crypto assets has become too large to ignore.”

Currently, over $150 billion is allocated across approximately 130 U.S. cryptocurrency funds. The total net assets of spot Bitcoin ETF products alone have reached $123 billion, accounting for 6.57% of Bitcoin’s total market cap.

Since early 2026, net inflows into these products have exceeded $1.1 billion. QCP Capital observed, “The correlation between cryptocurrencies and broader risk assets seems less like coincidence and more like a mechanism shift at the start of the year.”

06 Investment Insights

Morgan Stanley manages approximately $19 billion in client assets, and its entry into the crypto ETF space could bring unprecedented institutional capital flows.

Unlike asset managers like BlackRock, Morgan Stanley has a large wealth management division with thousands of advisors. Through internal ETF products, the bank can integrate these offerings into client portfolios and keep management fees in-house.

For ordinary investors, this means easier access to cryptocurrencies through traditional brokerage accounts. Shares will be created and redeemed via authorized participants in cash or physical form, and retail investors can buy and sell these shares on the secondary market through brokerage accounts.

On mainstream trading platforms like Gate, investors can closely monitor the price movements of major cryptocurrencies like Bitcoin and Solana. As of January 7, the overall market remains positive, with Bitcoin holding around $93,000 and Solana continuing to perform strongly.

Morgan Stanley plans to support token trading for its E*Trade online securities platform in 2026, indicating active expansion of its digital asset infrastructure.

Future Outlook

As of January 7, Solana’s price on Gate was $139.37, up 0.5% in 24 hours. Bitcoin remains above the $92,500 level.

Details of specific custody arrangements in Morgan Stanley’s application have not yet been disclosed; these are expected to be revealed in subsequent amendments. Once approved, these products will be listed on national securities exchanges, with trading codes yet to be announced.

With more institutional capital flowing into the market in 2026, cryptocurrencies may enter a new growth cycle. Cristiano Castro, Director of Business Development for BlackRock Brazil, revealed that by November 2025, the company’s spot Bitcoin ETF had become a major revenue source, with an allocation scale approaching $100 billion.