Morgan Stanley’s E-Trade Plans to Offer Crypto Trading as Trump Administration Signals Pro-Crypto Stance

E-Trade, Morgan Stanley’s online brokerage division, is exploring plans to launch crypto trading services amid expectations of a more favorable regulatory environment under the Trump administration, The Information reported Thursday, citing sources familiar with the matter.

An established player in the online brokerage industry, E-Trade does not offer direct crypto trading services. The firm currently offers indirect exposure to digital assets through investment products such as futures, ETFs, and stocks related to crypto assets. These include Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO), to name a few.

Morgan Stanley acquired E-Trade in late 2020 through an all-stock deal valued at $13 billion, aiming to strengthen its wealth management business. The addition of E-Trade’s substantial client base and assets under management was intended to enhance Morgan Stanley’s existing wealth management operations. If implemented, the move would establish E-Trade as one of the largest traditional financial institutions to enter the digital asset trading space, creating direct competition with established crypto exchanges like Coinbase.

The move was unveiled amid the trend of institutional adoption of crypto assets. Morgan Stanley, in August 2024, announced that select clients with a net worth of at least $1.5 million could access spot Bitcoin ETFs through its financial advisors. Morgan Stanley has not officially confirmed the timeline for the potential crypto trading rollout through its E-Trade platform.