(Reuters) - Morgan Stanley (MS) is seeking regulatory approval to launch exchange-traded funds tied to the price of cryptocurrency tokens, according to filings with the U.S. Securities and Exchange Commission on Tuesday, the first such move by a big U.S. bank.
The bank is looking to launch ETFs tied to the price of cryptocurrencies bitcoin and solana, according to the filings, aiming to deepen its presence in the cryptocurrency space.
Regulatory clarity under U.S. President Donald Trump has encouraged mainstream finance companies to embrace digital assets, which were once considered merely speculative instruments.
In December, the Office of the Comptroller of the Currency also allowed banks to act as intermediaries on crypto transactions, narrowing the gap between the traditional sector and digital assets.
Several investors prefer holding crypto via ETFs, which provide greater liquidity and security, and simplified regulatory compliance compared to managing the underlying asset directly.
The SEC also revamped the listing rules for new spot ETFs tied to cryptocurrencies last year, clearing the way for a host of new products.
By Arasu Kannagi Basil and Ateev Bhandari
Editing by Krishna Chandra Eluri
