In a recent development, Morgan Stanley’s E-Trade is reportedly considering offering cryptocurrency trading services. The company’s online stock trading company is considering the idea, according to a report by The Information.
In particular, the company currently provides indirect exposure to digital assets through investment products such as futures, ETFs, and cryptocurrency-related stocks. These include Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO).
If implemented, this move would position E-Trade as one of the largest traditional financial institutions entering the digital asset trading space, create direct competition with existing cryptocurrency exchanges like Coinbase, and provide a large entry point for interested mainstream investors. It will be. These assets are traded.
Trump effect?
The decision to explore cryptocurrency services is linked to the anticipated return of US President-elect Donald Trump. In particular, the cryptocurrency industry expects that the Trump administration will introduce regulations favorable to the cryptocurrency sector. Institutions like Morgan Stanley are among those likely to benefit from this change.
Morgan Stanley showed strong support for cryptocurrencies, revealing ownership of $272 million in spot Bitcoin ETFs by the end of the third quarter. Although this was only 2% of the company’s $1.3 trillion in assets, it was a significant investment. The investment paid off as BlackRock’s iShares Bitcoin Trust (IBIT) was later hailed as the greatest ETF launch of all time.
Growing institutional trends
This move comes amid a growing trend of institutional adoption of cryptocurrency assets. Other institutions such as Goldman Sachs have also expressed interest in the cryptocurrency market with clear policy guidelines. European financial institutions are also entering the sector following the implementation of the Markets in Crypto Assets (MiCA) regulation, which came into full effect on December 30, 2024.
Similarly, Spanish banking giant BBVA is set to launch a cryptocurrency trading service to the public after completing a pilot program through its Turkey-based subsidiary Garanti BBVA Kripto.