Key conclusions
- E-Trade plans to offer direct crypto trading amid regulatory optimism under Trump.
- The move would position E-Trade as a major player in digital asset trading.
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 company currently offers indirect exposure to digital assets through investment products such as crypto-linked futures, ETFs and stocks. These include the Grayscale Bitcoin Trust (GBTC) and the ProShares Bitcoin Strategy ETF (BITO), to name a few.
Morgan Stanley acquired E-Trade in late 2020 with an all-stock deal valued at $13 billion, aiming to boost its asset management business. The addition of E-Trade’s extensive client base and assets under management was intended to enhance Morgan Stanley’s existing asset 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 to established crypto exchanges such as Coinbase.
The move was revealed amid a trend towards institutional adoption of crypto assets. Morgan Stanley announced in August 2024 that select clients with a net worth of at least $1.5 million can access spot Bitcoin ETFs through its financial advisors.
Morgan Stanley has not officially confirmed a timeline for the potential introduction of crypto trading through its E-Trade platform.
