Morgan Stanley and Galaxy Digital Launch Crypto-to-ETP Lending for Wealth Clients
Morgan Stanley Wealth Management has joined forces with Galaxy Digital to allow qualified clients to lend cryptocurrencies in exchange for shares of spot crypto exchange-traded products (ETPs), thus sidestepping cash liquidation and possible tax implications. Clients can lend Bitcoin, Ether, and Solana to obtain shares in the Morgan Stanley Bitcoin Trust (MSBT) or other ETPs, significantly cutting onboarding times by as much as 75%. Galaxy has reduced its lending threshold for Morgan Stanley clients from $25 million to $5 million. Launched on April 8, MSBT charges a management fee of 0.14%, which is lower than BlackRock's iShares Bitcoin Trust (IBIT) at 0.25%. In its inaugural week, MSBT garnered over $100 million. Additionally, Morgan Stanley has tested spot crypto trading through E-Trade and submitted S-1 registrations for Ethereum and Solana trusts in January 2026.
Key facts
- Morgan Stanley Wealth Management and Galaxy Digital launched a referral arrangement for crypto-to-ETP lending.
- Clients can lend Bitcoin, Ether, and Solana to Galaxy Digital in exchange for shares of spot crypto ETPs.
- The process uses in-kind creation, bypassing cash liquidation and potentially avoiding taxable events.
- Onboarding times are reduced by up to 75%, from over four weeks to days.
- Galaxy lowered its lending minimum for Morgan Stanley clients from $25 million to $5 million.
- Morgan Stanley Bitcoin Trust (MSBT) launched on April 8 with a 0.14% management fee, the lowest among spot Bitcoin ETFs.
- MSBT attracted over $100 million in its first week and had no net redemptions in its first month.
- Morgan Stanley has filed for Ethereum and Solana trusts and applied for a National Trust Bank Charter.
Entities
Institutions
- Morgan Stanley Wealth Management
- Galaxy Digital
- Morgan Stanley Investment Management
- Morgan Stanley Bitcoin Trust (MSBT)
- BlackRock
- iShares Bitcoin Trust (IBIT)
- E-Trade
- Stablecoin Reserves Portfolio (MSNXX)
- Office of the Comptroller of the Currency (OCC)
- Nasdaq
- CoinMarketCap
- NFT Plazas
Locations
- United States