Morgan Stanley’s E*TRADE Adds Spot Crypto Trading via Zero Hash

Morgan Stanley’s E*TRADE has begun offering spot cryptocurrency trading to eligible self-directed clients, adding Bitcoin, Ether, and Solana to a platform that previously focused on traditional assets. The firm says the rollout is powered by a partnership with crypto infrastructure provider Zero Hash, with additional tooling—particularly for moving assets in and out of the platform—expected later this year.

According to a Morgan Stanley financial supplement, the self-directed channel serves 8.6 million households and held about $1.56 trillion in client assets as of March 31. The company’s update positions E*TRADE’s customer interface to mirror how many investors already view stocks and ETFs—now alongside major cryptocurrencies—while the back-end custody and transfer mechanics roll out in stages.

Key takeaways

• E*TRADE spot crypto trading is now live for eligible clients, covering Bitcoin, Ether, and Solana.
• Trading fees are set at 50 basis points, while custody and transaction services are handled via separate Zero Hash accounts.
• Digital asset custody through this structure is not covered by FDIC or SIPC protections, and Morgan Stanley expects later to transition services to Morgan Stanley Digital Trust.
• Transfers of cryptocurrency on and off the platform are expected later this year, following the initial trading launch.
• The move follows a May pilot and fits Morgan Stanley’s broader digital asset push, including stablecoin reserve services and spot ETF launches.

How E*TRADE’s spot crypto offering works

In Thursday’s announcement, Morgan Stanley said E*TRADE clients can buy, sell, and hold spot cryptocurrencies through the firm’s self-directed platform. While the user experience is designed to keep crypto holdings visible alongside stocks and other investments, the company’s implementation relies on Zero Hash for key parts of the service.

Specifically, Morgan Stanley outlined that trades carry a 50-basis-point fee. Custody and transaction-related services are routed through separate Zero Hash accounts that, importantly, are not covered by FDIC or SIPC protections. That distinction matters to customers evaluating risk and protections versus what they may expect from traditional brokerage or bank-like coverage.

The firm also indicated it plans to transition digital asset services to Morgan Stanley Digital Trust—its national trust bank that is currently in organization. The staged approach suggests the trading experience can launch while some compliance and operational infrastructure continues to develop or be consolidated under Morgan Stanley’s trust structure.

From pilot to broader access

Thursday’s launch follows a pilot that began in May, when Morgan Stanley tested the service with a limited group of users before expanding access to eligible E*TRADE clients. Earlier coverage from Cointelegraph noted that the company was preparing its spot crypto offering with a constrained initial user base, which can be a practical way to validate trading flows, onboarding, and operational controls before scaling.

Another notable element of Thursday’s update is what’s not yet fully available: Morgan Stanley said transfer functionality for moving digital assets on and off the platform is expected later this year. For many investors, the ability to withdraw to external wallets—or to deposit from one—is as important as the ability to trade. Until transfers are enabled, the offering may function more like a trading-and-holding experience within the platform ecosystem.

Broader digital asset strategy: ETFs and stablecoin services

This E*TRADE expansion arrives as Morgan Stanley has been deepening its digital asset involvement across multiple channels. The firm has already moved into areas that reach beyond direct retail spot trading, including stablecoin reserve services and spot exchange-traded products.

In April, Morgan Stanley introduced a stablecoin reserve offering that allows issuers to hold assets backing their tokens in one of the firm’s money market funds while earning interest, according to earlier reporting by Cointelegraph in connection with the launch. Later that same month, Morgan Stanley also launched a spot Bitcoin ETF on NYSE Arca with a 0.14% management fee, which Cointelegraph reported at the time as the lowest-cost Bitcoin ETF on the US market. That ETF debuted as the first spot Bitcoin ETF launched by a major US commercial bank.

Cointelegraph also reported that during the ETF’s first six trading days it attracted more than $100 million in net inflows. At the time of writing, the fund reportedly had about $385 million in cumulative net inflows, based on SoSoValue data for the product.

Meanwhile, regulatory and product design details continue to evolve. In June, Morgan Stanley amended proposed spot Ether and Solana ETF filings to set management fees at 0.14%, after previously applying fees in January when first seeking to list the funds. The commonality of that fee level underscores a competitive intent in a crowded ETF landscape, where management expense ratios can influence investor flows.

What investors should watch next

With E*TRADE’s spot crypto trading now available, the next milestones for customers are likely operational rather than marketing-driven: the timing of deposit/withdrawal transfer capabilities later this year and the planned transition of services to Morgan Stanley Digital Trust. For traders, the fee structure is already defined, but the most practical question remains how quickly customers will gain full flexibility to move assets beyond the brokerage environment.