Morgan Stanley has filed for Bitcoin and Solana ETFs, signaling growing institutional adoption. The proposed Solana ETF includes staking rewards, adding complexity and potential revenue for the sponsor.
What to Know:
- Morgan Stanley has filed for Bitcoin and Solana ETFs, signaling growing institutional adoption.
- The proposed Solana ETF includes staking rewards, adding complexity and potential revenue for the sponsor.
- Favorable regulatory shifts, including new SEC rules and OCC guidance, are encouraging traditional financial institutions to enter the crypto space.
Morgan Stanley, a $1.8 trillion banking giant, is making a significant move into the crypto market by applying to launch Bitcoin and Solana ETFs. This decision highlights the increasing interest from traditional finance in digital assets and the potential for wider adoption. The filings with the SEC represent a watershed moment, pushing one of the world’s most recognizable banking brands deeper into the crypto ecosystem.
According to the preliminary prospectuses, both trusts are designed as passive investment vehicles, aiming to track the market price of the underlying tokens. The Morgan Stanley Bitcoin Trust will calculate the daily value of its shares using a benchmark derived from executed trade flows across major spot bitcoin exchanges. Operationally, the trust expects to handle the purchase and sale of BTC primarily to facilitate the creation and redemption of share baskets.
The Morgan Stanley Solana Trust mirrors this structure but introduces staking rewards, reflecting rewards from staking a portion of the Trust’s SOL. This will involve contracting with third-party staking service providers, with rewards distributed to shareholders quarterly. The sponsor’s revenue is directly tied to the staking operation’s efficiency.
Morgan Stanley’s timing aligns with favorable political shifts and regulatory streamlining. Recent SEC rule changes permit national exchanges to implement generic listing standards for commodity-based trust shares, which include digital assets. The Office of the Comptroller of the Currency (OCC) has also softened its stance, allowing national banks to engage in “riskless principal” transactions involving crypto assets.
While the bank is advancing with Bitcoin and Solana, it has notably bypassed Ethereum and XRP in this filing cycle. Spot XRP ETFs in the US have demonstrated remarkable consistency, maintaining a “green streak” with zero days of outflows since their launch. Meanwhile, Ethereum ETFs have generated significant inflows, underscoring strong institutional interest.
Morgan Stanley’s move into Bitcoin and Solana ETFs signals a growing acceptance of crypto assets among traditional financial institutions. The inclusion of staking rewards in the Solana ETF and the favorable regulatory environment suggest a promising future for crypto investment products.
Related: XRP Hottest Crypto: Derivatives Data Signals Why
Source: Original article
Quick Summary
Morgan Stanley has filed for Bitcoin and Solana ETFs, signaling growing institutional adoption. The proposed Solana ETF includes staking rewards, adding complexity and potential revenue for the sponsor. Favorable regulatory shifts, including new SEC rules and OCC guidance, are encouraging traditional financial institutions to enter the crypto space.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
