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The debut of Morgan Stanley\u2019s spot <\/span>Bitcoin<\/span> ETF marked a major milestone on Wednesday for the investment bank with $9.3 trillion in client assets, but the financial powerhouse is already weighing what could be next when it comes to crypto.<\/span><\/p>\n The firm filed applications in January for exchange-traded funds tracking <\/span>Ethereum<\/span> and <\/span>Solana<\/span>, but it\u2019s doubtful that the company will stop there, Amy Oldenburg, head of digital-asset strategy at Morgan Stanley, told <\/span>Decrypt<\/span><\/i> in an interview this week.<\/span><\/p>\n \u201cWe\u2019re not going to stop at just Bitcoin,\u201d she said in reference to Morgan Stanley\u2019s spot Bitcoin ETF, which has generated approximately $46 million in net inflows since debuting Wednesday, according to Farside Investors. \u201cIt\u2019s really about the longer-term journey, and there\u2019s quite a long way to go.\u201d<\/span><\/p>\n Last year, Morgan Stanley became the first major wirehouse to allow its army of more than 15,000 wealth advisors to pitch third-party spot Bitcoin ETFs to eligible clients, <\/span>green-lighting<\/span> products offered by asset managers Fidelity and BlackRock. And Morgan Stanley\u2019s next moves could resemble steps those competitors have taken, Oldenburg said.<\/span><\/p>\n She described a <\/span>tokenized<\/span> money-market fund as \u201cdefinitely a path forward\u201d for Morgan Stanley\u2019s product roadmap, highlighting opportunities across other asset classes that the investment bank could tap for creating digital representations of real-world assets.<\/span><\/p>\n Franklin Templeton pioneered the format for yield-bearing tokens that are backed by U.S. Treasuries in 2021, but that asset manager\u2019s product has since been supplanted by BlackRock\u2019s BUIDL, which has grown to $2.3 billion, according to <\/span>RWA.xyz<\/span>. Fidelity\u2019s Digital Interest Token, meanwhile, has garnered a total value of roughly $172 million.<\/span><\/p>\n Parametric, a Morgan Stanley subsidiary, has established a plethora of rules-based investment strategies for clients, including <\/span>tax-loss harvesting<\/span>. Helping clients offset capital gains tax liabilities with digital assets represents \u201csomething to also explore,\u201d Oldenburg said.<\/span><\/p>\n The investment bank has already telegraphed other moves: Last year, it <\/span>confirmed plans<\/span> to offer crypto trading via E*TRADE in a team-up with infrastructure provider Zerohash. In February, Oldenburg <\/span>said<\/span> Bitcoin-based yield and lending services are also being explored.<\/span><\/p>\n ‘Captive Audience’ Could Drive Demand for Morgan Stanley’s Bitcoin ETF: Bloomberg Analyst<\/p>\n Morgan Stanley\u2019s Bitcoin Trust may struggle to grow past BlackRock\u2019s $53 billion spot Bitcoin ETF, but it\u2019ll <\/span>likely put pressure<\/span> on the industry-leading alternative, Bloomberg Senior ETF analyst Eric Balchunas told <\/span>Decrypt<\/span><\/i> this week.<\/span><\/p>\n<\/p><\/div>\n Aside from Morgan Stanley\u2019s ability to drive in-house distribution, Balchunas pointed to the product\u2019s expense ratio. Undercutting most competitors at 0.14% in fees was a considerable move within the \u201cTerrordome\u201d of asset managers dueling to make products cheap, he said.<\/span><\/p>\n Oldenburg indicated that fee compression is not a new concept for Morgan Stanley, and as time goes on, the newly launched ETF will likely serve as a commercial funnel.<\/span><\/p>\n