Morgan Stanley’s E-Trade is reportedly exploring direct Bitcoin trading services.
Morgan Stanley’s online brokerage division, E-Trade, is reportedly exploring the launch of direct Bitcoin trading services. This move aligns with expectations of a more favorable regulatory climate under the Trump administration.
$1.5T Morgan Stanley reportedly planning #Bitcoin trading via E-Trade. pic.twitter.com/Adaxffcszk
— TFTC (@TFTC21) January 2, 2025
E-Trade’s entry into direct Bitcoin trading would position it as one of the largest traditional financial institutions in the Bitcoin space. The platform currently offers indirect exposure to Bitcoin through products like Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO). If implemented, direct trading would allow E-Trade’s users to buy and sell Bitcoin, creating direct competition with established exchanges such as Coinbase.
Morgan Stanley acquired E-Trade in 2020 in a $13 billion all-stock deal, enhancing its wealth management business with E-Trade’s 5.2 million accounts and $360 billion in assets under management. Expanding into Bitcoin trading could leverage this client base and further Morgan Stanley’s involvement in Bitcoin.
The Information’s report indicates that the regulatory optimism stems from President Trump’s pro-Bitcoin stance, including plans to appoint industry-friendly regulators. Trump’s administration has pledged to make the United States “the world’s crypto capital,” potentially removing some of the regulatory barriers that have hindered Bitcoin adoption.
E-Trade’s move comes amid a broader trend of institutional adoption of Bitcoin. In August 2024, Morgan Stanley authorized its financial advisers to recommend Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). These actions reflect Morgan Stanley’s early leadership among traditional wealth managers in embracing Bitcoin.
While Morgan Stanley has not confirmed a timeline for the rollout, the reported plans signal a growing convergence between traditional finance and the Bitcoin ecosystem. As regulatory clarity increases, more institutions may follow E-Trade’s lead, further embedding Bitcoin into the financial mainstream.
