Morgan Stanley Considers Adding Crypto Trading To E-Trade Platform

Morgan Stanley, one of the world’s largest asset managers, is exploring the addition of cryptocurrency trading to its E-Trade online brokerage platform, according to a 2nd January 2025 report from The Information. 

The report suggests that the decision is partly influenced by expectations of a more favorable regulatory environment for cryptocurrencies under US President-elect Donald Trump.

Trump pledged to appoint crypto-friendly leaders to key regulatory positions. He expressed his ambition to position the US as “the world’s crypto capital.”

If the plans proceed, E-Trade would become one of the largest traditional retail brokerages to offer crypto trading, which could provide formidable competition to current market leaders such as Coinbase.

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Morgan Stanley Acquired E-Trade In 2020

Morgan Stanley acquired E-Trade in 2020. The brokerage platform currently manages 5.2 million accounts, with a combined total of approximately $360 billion in assets.

E-Trade would join a growing list of traditional brokerages offering cryptocurrency trading, including Robinhood, Fidelity, and Interactive Brokers.

Charles Schwab has also reported to be planning to enter the market in 2025, according to Bloomberg.

However, these brokerages typically offer a limited selection of cryptocurrencies compared to crypto-native exchanges like Coinbase.

E-Trade Could Go Full Crypto: Morgan Stanley’s Big Play

Morgan Stanley might bring crypto trading to E-Trade, opening the floodgates for millions of retail investors to jump into digital assets, like what Coinbase does, but backed by Wall Street muscle.

With Trump pushing… pic.twitter.com/3yjBCkySQB

— Mario Nawfal’s Roundtable (@RoundtableSpace) January 2, 2025

The move into crypto has been lucrative for many retail brokers. For instance, Robinhood reported a 112% year-on-year increase in crypto trading volume and a 165% jump in crypto revenue during Q3 2024, amounting to $14.4 billion and $61 million, respectively. 

In June 2024, Robinhood announced its $200 million acquisition of the Bitstamp crypto exchange. The move expands the company’s ability to serve institutional investors.

Morgan Stanley has already taken significant steps into the crypto space. In August, the firm authorized its 15,000 financial advisers to recommend Bitcoin exchange-traded funds (ETFs) like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), both considered among the top choices in the market. 

With $3.75 trillion in assets under management, including $1 trillion in self-directed accounts, Morgan Stanley’s entry into crypto trading could have a major impact on the market.

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Franklin Templeton Predicts Adoption If Bitcoin Reserves In 2025

As reported, spot Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton has forecasted a wave of nations adopting Bitcoin as a strategic reserve in 2025.

According to the company’s digital assets outlook, published on 30 December 2024, Bitcoin is expected to solidify its position as a global digital store of value. It will be driven by institutional and sovereign adoption.

While Franklin Templeton did not specify which nations might take this step, the firm emphasized a shift from speculative use to utility. It suggests that Bitcoin’s underlying technology will play a more integral role in global financial systems.

The prediction aligns with growing momentum in Bitcoin adoption as smaller nations like El Salvador and Bhutan continue to use Bitcoin reserves as part of their economic strategies.

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