Morgan Stanley plans to expand into the crypto space by launching Bitcoin and Solana exchange-traded funds (ETFs). These ETFs will be known as the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust. ETFs pool capital from multiple investors to track the performance of underlying assets like stocks, bonds, commodities, or cryptocurrencies. Unlike mutual funds, ETFs trade on stock exchanges with fluctuating prices. Crypto ETFs offer investors exposure to cryptocurrency without directly holding it, providing transparency, liquidity, and lower fees. The Trusts will issue common shares expected to be listed on a U.S. securities exchange, tracking Bitcoin and Solana price movements through a Pricing Benchmark. However, the Trusts and its sponsor are not regulated under the Investment Company Act of 1940, lacking traditional investor protections. The sponsor is not a registered investment adviser either, and while Bitcoin custody is outsourced to regulated custodians with insurance coverage, it does not cover value declines or losses outside specific theft events.

Read more at Yahoo Finance: Morgan Stanley has a new investment plan for traders in 2026