Morgan Stanley brings spot crypto trading to ETRADE users
Morgan Stanley’s ETRADE is now offering spot Bitcoin, Ether and Solana trading to its 8.6 million retail households, marking a major step in Wall Street's mainstream adoption of digital assets.
Morgan Stanley’s E*TRADE has launched spot cryptocurrency trading, allowing eligible retail clients to buy, sell and hold Bitcoin, Ether and Solana. The service operates through a partnership with crypto infrastructure firm Zero Hash, following a limited pilot that began in May. Users will be able to view their digital tokens alongside traditional equities within their existing portfolios.
The rollout opens crypto markets to a massive retail base. The self-directed E*TRADE channel served 8.6 million households and held $1.56 trillion in client assets as of March 31. Integrating digital assets into a platform of this scale signals a significant shift in how Tier-1 US banks are positioning themselves for mainstream crypto adoption.
The mechanics of the offering highlight the ongoing complexities of crypto custody in traditional finance. Trades carry a 50-basis-point fee, but assets are held in separate Zero Hash accounts that currently lack FDIC or SIPC protections. Functionality to transfer digital assets on and off the platform is expected later this year. Morgan Stanley noted it eventually plans to move these services to its own national trust bank, Morgan Stanley Digital Trust.
The E*TRADE rollout is just one facet of Morgan Stanley’s rapidly expanding digital asset strategy. In April, the bank launched a spot Bitcoin ETF with a 0.14% management fee, the lowest cost on the US market at the time. That fund has since attracted roughly $385 million in cumulative net inflows. In June, the firm amended proposed spot Ether and Solana ETF filings to match that 0.14% fee structure.
Beyond retail and ETF exposure, Morgan Stanley is targeting institutional crypto infrastructure. In April, the bank introduced a stablecoin reserve service that allows token issuers to hold backing assets in Morgan Stanley money market funds. This combination of retail spot trading, low-cost ETFs and institutional custody services establishes the bank as one of the most comprehensive crypto players among traditional US financial institutions.
