Morgan Stanley files for bitcoin, solana ETFs in digital assets push

Group 1 - Morgan Stanley is seeking regulatory approval to launch exchange-traded funds (ETFs) tied to the price of cryptocurrencies, specifically bitcoin and solana, marking the first such initiative by a major U.S. bank [1] - The move is part of a broader trend where mainstream finance companies are increasingly embracing digital assets, encouraged by regulatory clarity under the Trump administration [2] - The Office of the Comptroller of the Currency has allowed banks to act as intermediaries in crypto transactions, bridging the gap between traditional finance and digital assets [2] Group 2 - Investors prefer holding cryptocurrencies through ETFs due to benefits such as greater liquidity, security, and simplified regulatory compliance compared to direct management of the underlying assets [3] - Since the SEC approved the first U.S.-listed spot bitcoin ETF, various financial institutions, primarily asset managers, have launched similar funds [3] - U.S. banks are transitioning from being cautious facilitators to active advisers in the cryptocurrency space [3] Group 3 - In October, Morgan Stanley expanded access to crypto investments for all clients and account types, with Bank of America also allowing wealth advisers to recommend crypto allocations in client portfolios starting January [4] - The SEC has updated listing rules for new spot ETFs tied to cryptocurrencies, facilitating the introduction of new products in the market [4]