Morgan Stanley has filed with the U.S. Securities and Exchange Commission to launch exchange-traded funds tied to bitcoin and solana cryptocurrencies, becoming the first major U.S. bank to seek approval for such products. The Tuesday filings mark the firm's first foray into the popular crypto ETF space, two years after the explosion of cryptocurrency-focused funds brought them into mainstream investment portfolios.

Filing Details and Product Structure

The bank submitted paperwork for a Bitcoin Trust and a Solana Trust, each designed to hold the individual cryptocurrencies directly. The Solana product includes a unique feature where a portion of holdings would be staked, allowing investors to earn rewards by supporting the blockchain network through their token ownership.

Market Size and Opportunity

The cryptocurrency ETF market has reached significant scale, with more than $150.00 billion already invested across approximately 130 U.S. funds, according to Bloomberg data. Much of this investment flows into Bitcoin-specific products, many of which launched in January with immediate success. More than 10 pure Bitcoin-focused funds currently trade in the U.S., alongside various Solana-based products targeting the sixth-largest digital currency by market value.

Wall Street's Growing Crypto Embrace

Morgan Stanley's filing reflects a broader trend of traditional financial institutions deepening their digital asset involvement. Major firms including Goldman Sachs Group, JPMorgan Chase, and Citigroup have expanded institutional crypto efforts, rolling out trading operations and piloting custody, settlement, and tokenization initiatives.

"Crypto is becoming too big to miss for issuers, especially those who have in-house advisers," said Todd Sohn, a senior ETF strategist at Strategas Securities. "This is yet another milestone embracement similar to Vanguard allowing crypto ETF trading and BofA allowing for a small allocation."

Current Market Performance

Latest cryptocurrency market data shows mixed performance across major tokens:

Strategic Positioning

Morgan Stanley currently does not rank among the top-10 ETF issuers and commands fewer assets in the space than newer entrants like Neos Investments. The bank's existing fund offerings largely focus on fixed income and equities, making this crypto filing a significant strategic expansion. The firm has shown increased interest in cryptocurrency, including partnerships with infrastructure providers for E*Trade client trading and plans for crypto asset-allocation strategies.

Morgan Stanley has outlined tactical investment ideas across India's consumer sector, identifying stocks positioned to outperform and underperform the broader market over the next 15 to 45 days as earnings momentum, valuation resets, and input-cost trends unfold.

Recovery Bets: Fashion and Lifestyle Stocks

The brokerage sees significant scope for a rebound in Trent Ltd, which has underperformed the market in recent months. The stock declined approximately 8.00% over the past three months compared to a 6.00% rise in the Sensex.

After the recent correction, valuations at around 72x forward earnings are now closer to discretionary retail peers, leading Morgan Stanley to anticipate near-term upside potential.

Page Industries Ltd presents a similar recovery thesis, having fallen 17.00% over three months. The brokerage expects December-quarter revenue growth to improve sequentially to 6.00% with accelerating volumes. The stock's valuation, currently well below its five-year average, could re-rate as earnings momentum returns.

Aditya Birla Lifestyle Brands Ltd also features among preferred picks, with Morgan Stanley expecting sequential performance improvement and approximately 10.00% revenue growth, supported by better trends across lifestyle and allied brands.

Staples and Beverages: Selective Optimism

In the staples segment, Morgan Stanley remains positive on Marico, citing strong revenue growth driven by pricing strategies and easing copra costs, which should support margin recovery. Despite already outperforming peers, the firm believes further gains are possible as results stay ahead of the sector.

Varun Beverages represents another preferred investment, with expectations of upbeat management commentary around growth prospects and optionality from portfolio expansion keeping the risk-reward equation favorable.

Titan Company remains a relative outperformer despite sharply higher gold prices. Morgan Stanley expects strong festive-led jewellery growth in the December quarter, with stable-to-improving margins supporting continued stock strength.

Jubilant FoodWorks is positioned as a near-term earnings play, with solid same-store sales growth likely to reverse recent stock underperformance.

Caution Flags: FMCG and Retail Concerns

Morgan Stanley turns notably cautious on several heavyweight consumer names where near-term triggers appear limited. Britannia Industries is expected to underperform the broader market despite steady revenue growth. While biscuits are widely viewed as beneficiaries of GST rate cuts, the firm believes the stock will remain range-bound due to a lack of immediate catalysts.

Caution extends to FMCG majors Dabur and Hindustan Unilever. For Dabur, Morgan Stanley points to a slow pace of demand recovery and relatively weak performance versus peers, even as margins inch upward. Hindustan Unilever is expected to post the lowest revenue growth among FMCG peers in the December quarter.

In the paints segment, Berger Paints is flagged as vulnerable to continued underperformance. Morgan Stanley expects December-quarter revenue growth to trail management guidance and lag peers, particularly Asian Paints, based on dealer checks and weaker volume trends.

The brokerage expresses most concern about Avenue Supermarts, where near-term growth has softened meaningfully. Despite management's long-term focus on aggressive store expansion, current revenue growth trends and extremely rich valuations leave little room for disappointment.