This move highlights growing institutional comfort with digital assets
- Morgan Stanley has taken a deeper step into crypto markets, filing an early-form prospectus for an Ethereum ETF with the SEC.
- Like the Bitcoin and Solana ETFs, the bank will allow staking in Ethereum via third-party providers.
- Previously, the bank had a cautious stance on cryptocurrencies, but has since allowed high-net-worth clients to participate in Bitcoin funds through a third party.
Morgan Stanley, a U.S. banking giant, has filed an early-form prospectus with the Securities and Exchange Commission for the Morgan Stanley Ethereum Trust, taking a step toward launching its own spot Ethereum exchange-traded fund (ETF).
This comes after the bank filed its Bitcoin and Solana ETF with staking features on Tuesday.
New Ethereum ETF Coming
As stated in the S-1 dated Jan. 6, 2026, the trust would passively track Ethereum’s (ETH) price and has no plans to utilize leverage or derivatives.
The filing also notes that it would use third-party staking providers to stake a certain percentage of the fund’s Ethereum stack, with rewards paid at fixed intervals. The ETF would create and redeem shares to authorized participants and is currently pending regulatory approval.
Morgan Stanley (MS) closed at $187.75, up 0.65% on Tuesday. On Wednesday, pre-market the stock was up 0.016% at $187.78.
Previously, Morgan Stanley considered cryptocurrencies as risky investments, often warning clients about their volatility, lack of apparent intrinsic value, and regulatory risk. Reports also state that in 2021 and 2022, the bank started allowing high-net-worth clients to participate in Bitcoin funds through third-party vehicles. It framed crypto as a high-risk alternative investment instead of a core holding.
Ethereum (ETH) was trading at $3,215.40, down 0.7% in the last 24 hours. On Stocktwits, retail sentiment around Ethereum remained in ‘Bullish’ territory, with chatter levels at ‘high’ over the past day.
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