Morgan Stanley has filed for a spot bitcoin exchange-traded fund (ETF) and a Solana trust, marking a significant shift towards in-house crypto products amid rising institutional interest. The bitcoin ETF, named the Morgan Stanley Bitcoin Trust, aims to hold bitcoin directly and will trade on a US exchange if approved by the SEC. It plans to track bitcoin's price while maintaining a passive investment strategy. The fund will only create and redeem shares in large blocks through authorized participants, allowing retail investors to buy and sell shares on secondary markets. Morgan Stanley’s move aligns with a broader trend in the US, where the spot bitcoin ETF market has seen total net assets reach $123 billion, making up about 6.57% of bitcoin’s market cap. The bank's decision to develop its own crypto products indicates a stronger commitment to digital assets, particularly as the economics of ETFs have proven lucrative. For instance, BlackRock's spot bitcoin ETFs have become a significant revenue source, nearing $100 billion in allocations. With its extensive wealth management network, Morgan Stanley can integrate these products into client portfolios, enhancing its revenue potential by keeping management fees in-house. The article also touches on concerns raised by BlackRock's digital assets chief regarding the use of leverage in bitcoin derivatives, which he argues undermines bitcoin's image as a stable investment. He emphasizes that while bitcoin has strong fundamentals, its trading behavior resembles a "levered NASDAQ," complicating its appeal for conservative investors. This context highlights the challenges and volatility in the crypto market, even as institutional interest grows.