Morgan Stanley Eyes Crypto Trading on E-Trade Platform

According to reports, Morgan Stanley is considering adding cryptocurrency trading to its E-Trade platform, which could indicate a change in approach. This development coincides with growing anticipation for a more favorable regulatory environment under President-elect Donald Trump’s administration, which has made references to supporting policies that are supportive to cryptocurrency. The US might become a major hub for digital assets as a result of such actions.

Expanding E-Trade’s Capabilities

Integrating cryptocurrency trading would be a significant move for E-Trade, acquired by Morgan Stanley in 2020. With over 5.2 million accounts and $360 billion in assets under management, E-Trade could become one of the largest traditional brokerages to venture into digital assets. This expansion would place it in direct competition with established crypto platforms like Coinbase.

The addition of cryptocurrency trading aligns Morgan Stanley with competitors such as Robinhood, Fidelity, and Interactive Brokers, all of which already support digital asset transactions. Charles Schwab has also announced its intentions to enter the space, highlighting the growing acceptance of cryptocurrencies in mainstream financial markets.

The appeal of cryptocurrencies among retail investors is undeniable. Robinhood’s third-quarter report for 2024 showed a staggering 112% increase in crypto trading volume, accompanied by a 165% rise in revenue, totaling $61 million. These figures underline the potential profitability of crypto trading for brokerages.

Morgan Stanley’s dedication to embrace digital assets has already been shown. The company gave its advisors permission to suggest Bitcoin exchange-traded funds (ETFs) in 2024, giving customers access to funds like Fidelity’s Wise Origin Bitcoin Fund and BlackRock’s iShares Bitcoin Trust.

A larger trend in the sector is shown by Morgan Stanley’s possible entry into bitcoin trading through E-Trade. The company’s implementation of digital asset trading could accelerate the general adoption of this emergent asset class by further bridging the gap between traditional finance and cryptocurrencies, given that it manages $3.75 trillion in assets.