Compass Investments

– According to an S-1 registration petition filed with the SEC, the Morgan Stanley Solana Trust plans to give investors direct access to Solana price movements without having to own or manage the underlying coin. The model of this fund is similar to other spot crypto funds already listed on U.S. exchanges, offering daily price transparency and market liquidity.

Solana Trust’s registration dossier includes an element of staking, similar to other spot Solana ETFs, which will give the fund the opportunity to participate in network verification and earn fees for doing so. These staking revenues will be reflected in the fund’s net asset value, net of fees and operating costs.

Morgan Stanley also filed separate S-1 documents for a bitcoin trust aimed at tracking the spot price of the former cryptocurrency.

After a lackluster fourth quarter last year, the crypto markets are back on track, with Solana once again breaking the $135 mark and institutional funds continuing to flow steadily into Solana-based exchange-traded products.

ETFs based on Solana have surpassed the $1 billion assets under management threshold for the first time. According to data from the SolanaFloor tracker, the Solana ETFs have just over $1.09 billion in total assets under management, representing about 1.4% of Solana’s total market capitalization. This milestone was reached after more than 20 consecutive days without any net withdrawals.

The continuous inflows of funds confirm the continued interest of large capital in Solana. Investors from the traditional financial sector continue to channel funds through regulated ETF structures in preference to direct token ownership. Market participants view the steady inflows as an indicator that institutional players expect further growth rather than a temporary spike.

On Tuesday, Bitwise CTO Matt Hougan challenged the notion that institutional investors have been reticent to enter the crypto space, insisting that a more accurate characterization is that theyare rushing into cryptocurrencies en masse, making them a major strategic focus.

In another post, he emphasized how remarkable it is that Morgan Stanley is only willing to release these ETFs under its own brand as a third and fourth product, as opposed to the many other ETFs they manage under other brands.

This branding choice demonstrates the growing confidence in crypto-assets among major players in traditional finance.

Morgan Stanley’s announcements come amid increased regulatory certainty over digital assets in the United States. Under President Donald Trump’s administration, federal agencies have taken steps to shorten the distance between classic banking transactions and crypto markets. In December, the Office of the Comptroller of the Currency allowed banks to act as custodians for certain crypto transactions, removing a significant barrier to participation.

Also in September 2025, the SEC approved new general listing rules for cryptocurrency exchange-traded products. These rules authorize eligible funds to begin trading without having to go through individual reviews of rule changes, which previously delayed approval for months. This change has accelerated product development in the space and encouraged established financial firms to enter the market.

The filings reflect a strategic shift for Morgan Stanley. Just a couple months ago, the company’s advisors were prohibited from purchasing crypto-ETFs for their clients.