Morgan Stanley (MS) just filed for an Ethereum (ETH) Trust with the SEC on Tuesday, and if you're keeping count, that's the third crypto ETF filing in 48 hours. The bank registered Bitcoin (BTC) and Solana (SOL) trusts earlier this week, and it's starting to look like someone at Morgan Stanley discovered a "submit application" button and can't stop clicking it.
An Ethereum Trust That Actually Works for Income
The Morgan Stanley Ethereum Trust isn't just another passive wrapper for holding crypto. According to reports, it will be sponsored by Morgan Stanley Investment Management and hold ether directly, with shares valued daily based on pricing benchmarks from major trading venues. But here's where it gets interesting: the trust plans to stake a portion of its ETH holdings and distribute those staking rewards to shareholders at least quarterly, pending IRS guidance.
This structure essentially lets investors capture staking yield while holding shares in a traditional brokerage account, which is actually pretty clever. No need to figure out validators or worry about slashing risks yourself—the trust handles the staking program to earn network rewards while maintaining enough liquidity for redemptions.
Wall Street's Sudden Crypto Enthusiasm
The timing here isn't coincidental. These filings arrive as regulators under President Donald Trump have adopted a noticeably friendlier stance toward crypto markets, creating an opening for traditional financial institutions to expand their digital asset ETF offerings.
Morgan Stanley has been moving fast. The bank broadened crypto fund access to all clients in October, including retirement accounts, after previously restricting exposure to high-net-worth individuals only. Then in September, it partnered with Zerohash to enable Bitcoin, Ethereum, and Solana trading directly through its E*Trade platform.
They're not alone in this pivot. Bank of America Corp. (BAC) started allowing wealth advisers to recommend crypto allocations in January. And last December, the Office of the Comptroller of the Currency gave banks permission to act as intermediaries on crypto transactions, effectively narrowing the gap between traditional finance and digital assets.
Three Trusts in Three Days
Monday saw Morgan Stanley file for both a Bitcoin Trust and a Solana Trust, each designed as passive investment vehicles tracking their respective cryptocurrency's performance. Add Tuesday's Ethereum filing, and you've got a rapid-fire application spree that represents a significant strategic shift for Wall Street.
This wasn't always the plan. Morgan Stanley CEO and Chairman Ted Pick said in January 2025 that the bank's crypto approach depended on regulatory comfort and whether the firm, as a highly regulated financial institution, could actually act as transactors in the space. The regulatory clarity emerging under the Trump administration has clearly sped up that timeline considerably.
Now Morgan Stanley is seeking approval for three separate crypto ETFs covering the largest digital assets by market capitalization. That's a pretty comprehensive play.
When Everyone Moves at Once
Here's what makes this moment significant: when Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), Bank of America (BAC), and Morgan Stanley all pile into crypto ETFs at the same time, it signals something bigger than individual corporate strategy. This looks like a structural shift in how Wall Street views digital assets—from speculative curiosity to legitimate asset class worthy of mainstream investment products.
The regulatory environment changed, and the big banks responded immediately. Three filings in 48 hours might seem aggressive, but it also suggests Morgan Stanley sees a competitive advantage in moving quickly while the window is open.