Key Takeaways
- Morgan Stanley plans to offer Bitcoin trading via E-Trade by 2025.
- The bank is considering partnerships with established Bitcoin firms.
- This follows its August 2024 move to offer Bitcoin ETFs to wealthy clients.
Morgan Stanley, which manages $1.7 trillion in client assets, is preparing to enable Bitcoin trading on its E-Trade platform as early as next year.
The move would make it one of the first major U.S. banks to offer direct Bitcoin access to retail customers at scale.
Regulatory shifts & development
According to a Bloomberg report, the investment bank is still in the early stages of development, but internal momentum has been growing since late 2024.
This acceleration coincides with recent shifts in U.S. financial regulation, including the Federal Reserve and FDIC rolling back Biden-era guidance that restricted banking partnerships with digital asset firms.
Current & future Bitcoin exposure
E-Trade currently allows clients indirect exposure to Bitcoin through investment products, but it does not offer direct spot trading.
That could soon change, as Morgan Stanley is reportedly considering partnerships with established Bitcoin trading firms to support its entry into the space.
Previous steps into the Bitcoin market
This initiative follows the bank’s earlier steps into the Bitcoin market.
In August 2024, Morgan Stanley began allowing its advisors to recommend spot Bitcoin ETFs from BlackRock and Fidelity to eligible high-net-worth clients.
That move came just months after the approval of U.S.-listed Bitcoin ETFs and signaled the bank’s increasing confidence in the asset class.
Competing in the retail market
By enabling Bitcoin trading directly through E-Trade, Morgan Stanley aims to compete with retail platforms like Robinhood and Coinbase, while solidifying its role in the evolving financial landscape.
