Morgan Stanley Officially Enters: Trillion-Level Institutional Battle Behind Ethereum ETF Application

Another major Wall Street firm has submitted a cryptocurrency ETF application to the U.S. Securities and Exchange Commission (SEC). According to the latest news, Morgan Stanley has filed documents with the SEC to launch exchange-traded funds linked to the prices of cryptocurrencies such as Ethereum, Bitcoin, Solana, and others. This is not only a regulatory application but also a formal recognition of digital assets by traditional financial institutions.

Another Signal of Institutional Entry

Morgan Stanley’s application is not an isolated event. According to relevant information, Bank of America has issued formal advice to its wealth management clients to allocate about 4% of their assets to Bitcoin and cryptocurrencies. Institutions like Morgan Stanley, BlackRock, and Fidelity are also following suit, with 1%-5% crypto allocations becoming standard practice on Wall Street.

This reflects a larger trend: cryptocurrencies are evolving from “speculative tools” to “standard asset classes.”

Why apply now?

According to analysis from Bitwise advisors in the information, several key signals are being sent by this application:

• Market demand far exceeds expectations. Although the Bitcoin spot ETF (IBIT) has become the fastest ETF in history to reach $80 billion in AUM, Morgan Stanley still believes there is a large unmet genuine demand in the market, indicating we are still in the very early stages.

• Distribution channels are key. Institutions that control distribution channels truly have access to clients. Morgan Stanley’s decision to launch its own crypto ETF is essentially a defensive move to counter platform disintermediation and fee outflows.

• Brand value considerations. This is not just a financial product but also a signal of attractiveness to ultra-high-net-worth clients.

Ethereum’s Market Position

As the second-largest asset by cryptocurrency market cap, Ethereum’s role in this institutional entry is particularly important.

According to the latest data, ETH is currently priced at $3,214.43, with a market cap of $38.796 billion, accounting for 12.30% of the entire crypto market. Recently, it has performed steadily, rising 8.06% over 7 days. Although there was a slight correction in the past 24 hours (down 0.39%), the 24-hour trading volume reached $2.812 billion, maintaining high market activity.

These data indicate that Ethereum, as the second-largest crypto asset, has liquidity and market depth fully capable of meeting institutional investment needs.

Why ETH, BTC, and SOL?

Morgan Stanley’s simultaneous application for ETFs of three cryptocurrencies is not a random choice:

• Bitcoin is the largest and most recognized crypto asset, the preferred choice for institutional entry.
• Ethereum is the largest smart contract platform, representing the blockchain application ecosystem.
• Solana reflects the development direction of high-performance public chains, indicating a comprehensive layout by institutions across different sectors.

Market Impact and Future Outlook

What does Morgan Stanley’s application mean?

In the short term, it will accelerate the inflow of compliant funds into the crypto market. Bank of America manages over $1.7 trillion in assets, and Morgan Stanley’s assets are also in the trillions. Even a 1% fund inflow could bring hundreds of billions of dollars in buying demand.

In the medium term, it will promote the shift of cryptocurrencies from retail markets to institutional markets. As more traditional financial giants launch compliant products, cryptocurrencies will gradually become a standard part of investment portfolios.

In the long term, this signifies a fundamental transformation: cryptocurrencies are upgrading to become an essential component of global financial infrastructure. From the perspectives of anti-inflation and sovereign risk hedging, institutions are beginning to see them as strategic hedging tools.

Summary

Morgan Stanley’s submission of an Ethereum ETF application to the SEC marks a shift in Wall Street’s attitude toward cryptocurrencies from cautious observation to active engagement. This is not just a regulatory filing but also a signal that traditional finance is officially embracing digital assets.

For Ethereum, as the second-largest crypto asset and the largest smart contract platform, it will directly benefit from this wave of institutional entry. When compliant channels open and institutional funds flow in, the market valuation logic and liquidity structure will face permanent changes.

From “scam tools” to “standard allocations,” cryptocurrencies have taken ten years to convince Wall Street. Now, the era of true institutionalization may just be beginning.