Morgan Stanley rolls out crypto trading on E*Trade for 8.6M clients
Morgan Stanley has expanded its cryptocurrency services with a series of new offerings. The financial giant, which oversees the sixth-largest assets under management in the U.S., is now testing spot crypto trading on its ETrade platform. This move follows earlier launches of a bitcoin ETF and a stablecoin reserves fund. The bank began a live pilot for spot cryptocurrency trading on ETrade in early 2024. Initially limited to a small group, the service will roll out to all 8.6 million E*Trade clients later this year. Each transaction carries a 50-basis-point fee.
In October 2022, Morgan Stanley introduced its spot bitcoin ETF, named MSBT. Within six trading days, the fund attracted $205 million in assets. The following January, the bank launched a stablecoin reserves fund, complying with the GENIUS Act’s requirements.
Looking ahead, the firm plans to allow clients to convert cryptocurrency directly into ETF shares without liquidating their holdings. Institutional clients will also gain access to tokenised equities trading in the second half of 2023. Morgan Stanley’s latest initiatives signal a deeper push into digital assets. The E*Trade pilot, bitcoin ETF, and stablecoin fund reflect growing demand for crypto services among retail and institutional investors. The bank’s structured approach aims to integrate cryptocurrency trading with traditional investment products.
