Wall Street bank Morgan Stanley has filed an S-1 registration application with the Securities and Exchange Commission (SEC) to launch a spot Ethereum ETF.
According to a filing with the SEC, the bank has taken a new step toward expanding its presence in the crypto asset space by preparing a registration notice for an Ethereum Trust structure.
The application states that the trust plans to stake a portion of its ETH holdings and distribute the resulting rewards to shareholders at least every three months. These distributions will be subject to guidance from the US Internal Revenue Service (IRS) and shaped within the framework of tax regulations.
Morgan Stanley’s expansion into the cryptocurrency ecosystem has gained momentum recently. In October, the bank provided its clients with access to crypto assets through its wealth management arm. Analysts believe the ETF application reflects a trend among traditional finance (TradFi) institutions to offer digital assets through regulated channels familiar to investors.
The firm also announced last September that it had partnered with Zerohash, enabling Bitcoin, Ethereum, and Solana transactions through its E*Trade platform. Previously, there were plans to support cryptocurrency trading on the bank’s E*Trade and E-Trade Pro platforms using Zerohash infrastructure.
A new filing with the SEC reveals that Morgan Stanley does not see its presence in the crypto markets as limited to trading services; it aims to build a more institutional framework with multi-layered products such as ETFs, trusts, and staking.
*This is not investment advice.