Morgan Stanley applies for spot Ethereum ETF, Wall Street financial institutions accelerate digital asset deployment

Source: BlockMedia Original Title: Morgan Stanley Applies for Spot Ethereum ETF… Wall Street Expands Interest in Digital Assets Original Link: According to reports, Morgan Stanley has applied for a spot Ethereum ETF(, marking one of the major US banks officially accelerating its entry into the digital asset market. The ETF will track the price of Ethereum)ETH( and distribute staking yields to shareholders.

This news comes days after a leading bank announced an expansion of client access to digital assets, reflecting the growing institutional demand for digital assets.

Major Wall Street Banks Fully Enter the ETF Market

Morgan Stanley has also submitted ETF applications related to Bitcoin and Solana. This signifies Morgan Stanley’s formal large-scale expansion into the digital asset market and represents a significant development in the approximately two-year history of the US digital asset ETF market.

The S-1 filing is regarded as an important milestone in the integration of traditional finance and the digital asset market. Morgan Stanley, managing approximately $1.6 trillion in assets, is gradually increasing client exposure to digital assets through regulated investment products.

Last October, Morgan Stanley allowed financial advisors to recommend digital asset ETFs to clients, followed by plans to launch its own ETF to meet market demand. This move reflects strong interest and actual demand among many clients for digital asset ETFs.

Furthermore, this move demonstrates the overall trend of major Wall Street financial institutions expanding their focus into the digital asset space. Recently, a leading bank implemented a policy advising asset management advisors to allocate 1-4% of their overall investment portfolios to digital assets. Financial giants including BlackRock, Fidelity, a large investment bank, a financial institution, and a financial group have also entered digital asset businesses such as trading operations and tokenization services.

Market Volatility and Continued Support from Banks

However, the acceptance of digital assets by major banks is occurring amid a weak market. Over the past few months, the digital asset market has performed poorly, with Bitcoin’s market cap decreasing by about $60 billion. The small-cap digital asset index has fallen back to November 2020 levels, and newly launched altcoin ETFs have also shown negative performance.

Although institutional investors’ holdings of digital assets have increased from 20% to 28%, a significant portion of the market still relies on retail investors. Against this backdrop, Morgan Stanley’s launch of digital asset-related ETFs reflects changes in market participation patterns.

Additional uncertainties in economic policy remain, which could impact the market. Market expectations of loose monetary policy may bring new opportunities.