Morgan Stanley E*TRADE Launches Spot Crypto Trading via Zero Hash Partnership

Woofun AI reports that Morgan Stanley’s ETRADE has activated spot cryptocurrency trading, enabling eligible clients to buy, sell, and hold Bitcoin, Ether, and Solana through a strategic partnership with infrastructure provider Zero Hash.

Structurally, the platform integrates these digital assets alongside traditional equities, though transfer functionality for moving assets on and off the platform is scheduled for later this year. Trades incur a 50-basis-point fee, while custody and transaction services are managed via separate Zero Hash accounts.

Notably, these accounts fall outside FDIC or SIPC protections, a critical distinction for risk assessment.

The service targets a substantial client base, with the self-directed channel serving 8.6 million households and holding approximately $1.56 trillion in assets as of March 31. Morgan Stanley intends to transition digital asset services to Morgan Stanley Digital Trust, its national trust bank currently in organization, thereby altering the custody landscape.

Per Woofun AI, this launch follows a pilot initiated in May, which tested the service with a limited user group before broader expansion.

Concurrently, the firm introduced non-crypto updates, including fractional share trading, a revamped retirement planning tool, and new features for the Power ETRADE Pro desktop platform.

Beyond retail spot trading, the firm’s broader digital asset strategy includes stablecoin reserve services and crypto exchange-traded funds. In April, Morgan Stanley launched a stablecoin reserve offering, allowing issuers to hold backing assets in its money market funds while earning interest.

The same month, the company debuted its spot Bitcoin ETF on NYSE Arca with a 0.14% management fee, marking the lowest-cost Bitcoin ETF in the US market at the time. During its first six trading days, the fund attracted more than $100 million in net inflows, surpassing the cumulative inflows of WisdomTree’s spot Bitcoin ETF, which launched in January 2024.

At the time of writing, the fund has accumulated about $385 million in cumulative net inflows. In June, Morgan Stanley amended its proposed spot Ether and Solana ETF filings to set management fees at 0.14%, following initial applications submitted in January.