Morgan Stanley has taken a major step into the Ethereum market by filing a registration for an Ethereum Trust with the U.S. Securities and Exchange Commission on Wednesday. The filing comes just one day after the bank submitted applications for spot Bitcoin and Solana ETFs, marking three cryptocurrency product filings within a 24-hour span and highlighting the rapid expansion of digital asset offerings from one of Wall Street’s largest institutions.
The proposed Morgan Stanley Ethereum Trust will hold Ethereum directly, track its market price, and generate rewards through staking. Unlike some rival products, the trust plans to reflect staking returns through the net asset value rather than distributing them directly to shareholders. Investors will see quarterly distributions of rewards, depending on IRS guidance, while the trust’s daily share values will be calculated using pricing benchmarks from major trading venues. Morgan Stanley Investment Management will sponsor the passive investment vehicle, ensuring a regulated and transparent structure.
This filing follows the bank’s strategic push to broaden crypto fund access in October 2025, opening participation to all clients, including retirement accounts. Previously, the firm had limited its crypto offerings to high-net-worth individuals. Strategic partnerships, such as the collaboration with Zerohash in September to enable trading of Bitcoin, Ethereum, and Solana through the E*Trade platform, further position Morgan Stanley to capitalize on growing institutional and retail demand.
Regulatory conditions have also played a significant role in this expansion. Under former President Donald Trump, U.S. regulators adopted a more accommodating approach to crypto markets, paving the way for established financial firms to pursue ETFs that previously faced uncertain approval paths. Morgan Stanley’s CEO and Chairman, Ted Pick, has emphasized that the bank’s engagement with digital assets will continue to depend on regulatory comfort, highlighting the importance of operating within a highly controlled and compliant environment.
Market data underscores the opportunity for Ethereum-focused products. Spot Bitcoin ETFs have seen significant trading since their early 2024 launch, with cumulative U.S. volumes exceeding $2 trillion, while spot Ethereum products currently manage roughly $20 billion in assets. These figures illustrate strong institutional appetite and validate Morgan Stanley’s aggressive push into the space, which may also drive broader adoption and liquidity for Ethereum across U.S. markets.
Morgan Stanley’s move reflects a larger trend on Wall Street, where traditional financial firms are increasingly entering the crypto space with regulated, mainstream products. By offering an Ethereum ETF with staking rewards, the bank not only provides investors with exposure to a leading digital asset but also integrates the growing trend of yield generation through proof-of-stake mechanisms. As institutional interest continues to rise, Morgan Stanley’s filings could set the stage for further expansion of regulated crypto investment products and influence how major investors access digital assets in the coming years.
