Morgan Stanley's Big Move into Crypto: What's Next for Ether?

Morgan Stanley is making waves in the crypto world again. This time, they've filed plans with the US Securities and Exchange Commission (SEC) to launch a spot Ether exchange-traded fund (ETF). This isn't their first rodeo, though. They've already filed for Bitcoin and Solana ETFs, showing they're serious about diving into crypto. The new ETF, called the Morgan Stanley Ethereum Trust, aims to track the price of Ether (ETH). It won't be selling Ether to make extra profits, but it plans to use third-party services to stake some of its holdings for passive income. The filing lists Morgan Stanley Investment Management as the sponsor and CSC Delaware Trust Company as the trustee, but the custodians and exchange details are still under wraps.This move hints at Morgan Stanley's growing interest in crypto. They've already allowed their financial advisors to recommend crypto funds to clients with IRAs and 401(k)s since October 2024. If approved, this new ETF could boost demand for Ether, especially since spot Ether ETFs have shown resilience despite the recent market crash. Despite the $19 billion market correction in October, spot Ether ETFs have only seen about 18% of their flows from their peak of $15 billion. Whales, or large investors, have been increasing their spot Ether exposure, while smart money traders have been selling. However, new crypto wallets created in the past 14 days have added $2. 34 billion worth of spot Ether, indicating a surge in demand from new entrants.