Morgan Stanley, managing over $9 trillion in assets, recently appointed its first Head of Digital Asset Strategy and submitted applications for Bitcoin and Solana spot ETFs to the SEC, marking the Wall Street giant's shift from being merely an observer of cryptocurrency.

In early 2026, Morgan Stanley made a series of decisive moves: the company not only officially established the Head of Digital Asset Strategy position, but also submitted multiple cryptocurrency ETF applications to U.S. regulators.

This series of initiatives marks a transition for this top investment bank from a cautious wait-and-see approach to full participation in digital assets.

1. Strategic Upgrade

● Morgan Stanley's transformation is not accidental. In January 2026, this Wall Street giant managing $9.3 trillion in assets announced the appointment of Amy Oldenburg as Head of Digital Asset Strategy. This newly established position covers product design, cross-departmental collaboration, and trading layout, indicating the company's move from research-level cryptocurrency activities to execution-level.

● Looking back at Morgan Stanley's path over the past three years, the transition has been gradual but evident: In 2024, the company only allowed advisors to introduce restricted crypto asset products to select high-net-worth clients. By 2025, the restrictions were notably relaxed, allowing more wealth management clients to be included, with Bitcoin starting to be defined as a “digital hedge tool” in portfolios.

● As 2026 began, the company's actions further escalated—advancing direct cryptocurrency trading plans and submitting multiple applications for spot crypto asset funds to U.S. regulators. Morgan Stanley's repositioning on crypto assets stems from a core judgment: digital assets are transforming from the financial periphery to being a legitimate component of mainstream asset allocation.

2. In-depth Business Development

Morgan Stanley's business layout is being deepened comprehensively. In October 2025, the company lifted restrictions on wealth management clients holding crypto funds, expanding the scope to all clients, including retirement accounts.

● Previously, this option was limited to clients with aggressive risk tolerance and assets of at least $1.5 million. In specific investment recommendations, Morgan Stanley's Global Investment Committee recently released model suggestions indicating that depending on client objectives, the maximum initial allocation ratio for cryptocurrency could be as high as 4%.

● In January 2026, Morgan Stanley submitted registration statements for its Bitcoin Trust and Solana Trust to the SEC. According to the submitted documents, if approved, these funds could bring new inflows to Bitcoin and Solana.

● These funds are sourced from over 19 million clients served by Morgan Stanley's Wealth Management division as of April 2025. Morgan Stanley's move into cryptocurrency ETFs indicates that large U.S. banks are no longer sitting on the sidelines, being the first among the top ten U.S. banks to formally launch cryptocurrency ETFs.

3. Regulatory Shift

The shift in the U.S. regulatory environment has opened doors for financial institutions to participate in the crypto market. On January 29, 2026, the SEC and the Commodity Futures Trading Commission held a highly anticipated joint public meeting.

● The meeting marked one of the most significant efforts in years aimed at presenting a coordinated federal regulatory approach to digital assets. Both agencies openly emphasized cross-agency coordination, jurisdictional collaboration, and proactive regulation, rather than unilateral enforcement actions.

● This regulatory shift resonates with the legislative process. The U.S. Congressional Committee pointed out in its 2026 policy outlook that regulators seem prepared to continue relieving regulatory burdens and clarifying the legal framework for the industry. This could encourage companies to integrate digital assets into their operations, including treasury management, cross-border transactions, and payments.

● In 2025, regulators significantly eased barriers to crypto industry regulations, such as revoking guidance that prevented SEC-regulated companies from engaging in crypto services and dropping pending enforcement actions. This clearer regulatory environment has created conditions for traditional financial institutions like Morgan Stanley to make a significant entry into the market.

4. Opening West, Banning East

● In stark contrast to the open stance of the U.S., China further tightened its regulatory grip on virtual currencies in February 2026. Eight departments, including the People's Bank of China, jointly issued a notice titled "On Further Preventing and Dealing with Risks Related to Virtual Currencies." The notice clearly states that conducting virtual currency-related business activities within the country constitutes illegal financial activity and is strictly prohibited.

● Chinese regulators pointed out that virtual currencies rely on blockchain technology and support peer-to-peer transactions, breaking through the physical concept of "national borders", with related risks easily transmitting across borders. Regarding the tokenization of real-world assets, the notice explicitly defines such activities as converting ownership, income rights, etc., into tokens using cryptographic technology and distributed ledgers or similar technologies.

● Engaging in such activities within the country, as well as providing intermediary, information technology services, etc., constitutes illegal financial activity and is to be prohibited. This diverging regulatory policy is forming a split landscape in the global crypto market, with the proactive engagements of Western financial institutions starkly contrasting with the strict restrictions in Eastern markets.

5. Future Path

● Morgan Stanley's journey in cryptocurrency continues to expand. The company plans to offer direct trading of Bitcoin, Ethereum, and Solana through its E*Trade platform. Although this plan has not yet been fully implemented, it demonstrates the company's comprehensive strategic layout regarding digital assets.

● The participation of financial institutions is also changing the market's investment logic. Morgan Stanley strategists believe the crypto market has entered the "autumn phase" of Bitcoin's four-year cycle and suggest that investors take profits before a potential "winter" arrives.

● This "harvest" metaphor indicates that Wall Street executives are starting to view the rhythm of the Bitcoin market through a cyclical investment framework, similar to commodity or liquidity-driven macro cycles.

● Looking ahead to 2026, the policy outlook report from the conference committee suggests that policymakers and regulators appear prepared to continue easing regulatory burdens and clarifying the legal framework of the industry. A clearer regulatory environment will further accelerate the integration process of digital assets into traditional financial institutions.

With Morgan Stanley submitting its Bitcoin and Solana spot ETF applications, more than half of the six major banks in the U.S. have begun providing some form of cryptocurrency services.

This bank, managing $7.9 trillion in wealth and investment management assets, is now not only distributing third-party products but is also beginning to build its own cryptocurrency product line.

The "alignment" of the traditional financial system with the crypto market is rapidly advancing. From the implementation of the stablecoin regulatory bill in 2025 to major banks launching their own crypto products in 2026, the trend of digital assets moving from peripheral allocation to the core position in institutional asset frameworks has become irreversible.

Morgan Stanley's crypto layout in 2026 is just the beginning of this grand transformation.

 

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