Morgan Stanley has made a big move into the world of Bitcoin. The Wall Street bank has filed documents with U.S. regulators to launch an exchange-traded fund (ETF) linked directly to bitcoin. This shows that one of the biggest U.S. banks is becoming more confident in digital assets.

The S-1 from was submitted to the U.S. Securities and Exchange Commission (SEC) on January 6, 2026. If approved, the product will be called the Morgan Stanley Bitcoin Trust. The ETF is designed to follow the price of the digital asset by holding the actual assets, not derivatives or complex financial tools. The bank also filed for a Solana ETF.

This move is important because large U.S. banks have mostly stayed away from launching their own bitcoin ETFs. Until now, firms like BlackRock and Fidelity, which are asset managers, have dominated this space.

Morgan Stanley would be the first major U.S. bank to issue its own spot bitcoin ETF. The timing reflects changes in regulation. Clearer rules under the current U.S. administration have made banks more comfortable with the scarce digital asset.

In December, the Office of the Comptroller of the Currency allowed banks to play a bigger role in digital asset transactions, making it easier for traditional finance to work with them. According to the filings, the bitcoin ETF would hold bitcoin directly in secure digital wallets.

Most of the bitcoin would be kept in cold storage for safety, while a smaller amount would be used for trading. The fund’s value would be calculated daily using prices from major bitcoin exchanges.

The bitcoin ETF would be passive, meaning it would not actively trade based on market movements. Shares would be created and redeemed in large blocks by approved institutions.

Regular investors would be able to buy and sell shares on stock exchanges through their brokerage accounts. Morgan Stanley’s move comes as bitcoin ETFs continue to grow quickly.

U.S. spot bitcoin ETFs now hold about $123 billion in assets, equal to roughly 6.6% of bitcoin’s total market value. On January 2 and 5, 2026, these funds saw relatively big inflows, totaling more than $1.1 billion.

Some analysts expect even more growth. Estimates suggest bitcoin ETFs could attract between $15 billion and $40 billion in new money this year, depending on market conditions.

Strong demand shows that many investors prefer regulated ETFs instead of holding bitcoin directly. Morgan Stanley’s large wealth management business gives it a major advantage. The firm manages about $1.6 trillion in assets and serves more than 19 million clients worldwide. Until last year, its advisers were limited in how they could use digital asset products for clients.

That changed in October, when Morgan Stanley allowed advisers to recommend digital asset investments and suggested limits of up to 4% in aggressive portfolios. “Clearly they were seeing meaningful demand from clients for crypto ETFs,” said Nate Geraci, president of NovaDius Wealth.

By launching its own ETFs, Morgan Stanley can keep management fees within the firm instead of paying outside providers. Bloomberg ETF analyst Eric Balchunas called the move “smart” and a “shocker,” noting it aligns with a broader “bring your own assets” strategy used by large financial firms.