Key Insights:
- Morgan Stanley submitted an S-1 registration for Ethereum ETF application with the U.S. SEC.
- The $9 trillion financial giant also plans to offer staking, with a custodian, exchange, and pricing benchmark yet to be revealed.
- Analysts predicted further upside momentum in ETH price amid the ETF hype.
$9 trillion Morgan Stanley has filed for Ethereum ETF with the U.S. Securities and Exchange Commission (SEC) on Wednesday. This comes a day after S-1 filings for Bitcoin and Solana ETFs.
Ethereum ETF will give investors regulated exposure to ETH price. Traders responded immediately to the announcement, triggering a rebound in prices.
Morgan Stanley Files S-1 For Ethereum ETF
According to the US SEC filing on January 7, Wall Street giant Morgan Stanley submitted an S-1 for Ethereum ETF.
The Ethereum ETF aims to generate returns by tracking the spot prices of ETH, giving investors direct exposure to the leading cryptocurrency.
“The Sponsor does not speculatively sell ether at times when its price is high or speculatively acquire ether at low prices in the expectation of future price increases,” as per the filing.
The Morgan Stanley Ethereum ETF will also not utilize leverage, derivatives, or any similar arrangements in seeking to meet its investment objective.
The financial giant has not yet shared details like the exchange, custodian, and price index in its filing. For now, it plans to allow in-kind creation and redemption for the fund.
Morgan Stanley Investment Management Inc. is the sponsor of the Trust, and CSC Delaware Trust Company, a Delaware trust company, is the trustee of the trust.
Morgan Stanley plans to use staking to help generate yields for investors. It will engage one or more third-party staking service providers.
The company will share more details, such as custodian, fees, exchange, and ticker, in future filings. By making these filings, Morgan Stanley plans to boost its presence in the crypto market.
As The Coin Republic reported, Morgan Stanley announced plans to launch crypto trading for its retail customers through its E-trade division this year.
The financial giant plans to list Bitcoin, Ethereum, and Solana first. The firm has also made Bitcoin investments available to all its wealth clients, lifting previous restrictions.
Morgan Stanley to Join Other Ethereum ETF Issuers
Morgan Stanley aims to join other major crypto ETF issuers, such as BlackRock, Fidelity, Franklin Templeton, and Bitwise.
On Tuesday, the financial giant submitted S-1 filings for Bitcoin and Solana ETFs to the US SEC. These ETFs could get approval in the next quarter under the Generic listing standards.
There are already 9 major spot Ethereum ETFs, and together these funds have total net assets of over $20 billion.
Spot Ethereum ETF has recorded massive inflows since the start of the year. U.S. spot Ethereum ETFs have net inflows of $12.79 billion.
On Tuesday, Ethereum ETF saw nearly $114.74 million in inflows. BlackRock’s ETHA purchased $198.80 million in ETH, according to Farside Investors.
Analysts Predict Rise in ETH Price
Popular analyst Michael van de Poppe pointed out a clear breakout above the $3,100 area in ETH price. He sets $3,800 as the next target zone.
He predicts the start of a new uptrend, as it clearly broke above the 21-day MA. “As long as that is the case, I think that we’re expanding the run in the coming weeks.”
ETH price was trading around $3,220 at the time of writing. The 24-hour low and high were $3,184 and $3,303, respectively.
Ethereum price bounces following the Morgan Stanley Ethereum ETF filing. Analysts are forecasting upward momentum for ETH.