Morgan Stanley just filed for two crypto ETFs, but one massive omission sends a brutal signal

Morgan Stanley has applied to the SEC to launch two passive exchange-traded funds (ETFs) tracking Bitcoin and Solana, marking a significant move for the $1.8 trillion banking giant into the crypto ecosystem. While the bank oversees many ETFs under subsidiary brands, these would be only the third and fourth to carry the main "Morgan Stanley" nameplate, suggesting a serious bid for the crypto ETF market. The Bitcoin trust will track the asset's price, while the Solana trust will also incorporate rewards from staking SOL, a structurally more complex feature requiring third-party providers and potentially exposing the fund to technical risks. The timing aligns with a more crypto-friendly regulatory environment, including recent SEC rule changes simplifying commodity-based trust share listings and OCC guidance allowing banks to engage in crypto transactions. This follows Morgan Stanley's internal shifts, such as easing crypto allocation caps and planning a crypto trading service on E*Trade. However, the filing notably omits Ethereum and XRP ETFs, despite strong recent institutional inflows for both assets, which analysts suggest sends a "brutal signal" about the bank's immediate focus or perceived regulatory hurdles for those specific assets.

(Source：CryptoSlate)