Morgan Stanley has launched cryptocurrency trading through its E-Trade app, starting with a pilot program. The pricing is the key part of the launch: the firm is charging 50 basis points on the dollar value of each crypto trade. According to the source material, that fee comes in below the rates charged by Coinbase Global Inc., Robinhood Markets Inc., and Charles Schwab Corp.
E-Trade pilot set to expand across 8.6 million clients
The service is still in its pilot phase, but Morgan Stanley plans a wider rollout in the coming months. The bank expects the product to become available to all 8.6 million E-Trade clients this year. That gives the move much broader significance than a limited feature test, because it places crypto trading inside an established retail brokerage channel.
The same division also launched the Morgan Stanley Bitcoin Trust, or MSBT. The fund pulled in more than $100 million in just six days after launch. The article says a meaningful share of those inflows came directly from individual investors rather than professional advisers, pointing to strong demand for digital asset exposure from self-directed users.
Lower pricing puts pressure on established crypto platforms
Morgan Stanley is entering the market by competing on one of the clearest variables for traders: fees. The source describes the bank as one of the more cost-effective trading platforms at this rate, putting it into direct competition with Coinbase, Robinhood, and Charles Schwab rather than treating crypto as a niche add-on product.
Industry observers cited in the article say the move could start a new round of fee competition across U.S. financial platforms, especially as mainstream investors continue seeking exposure to assets such as Bitcoin (BTC) and Ethereum (ETH). The rapid fundraising by MSBT also points to continued interest in institutionally structured crypto products, even as more investors choose to manage positions on their own instead of relying on advisers.
Traditional finance keeps adding crypto to existing distribution
The article frames the launch as part of a wider shift among traditional financial institutions integrating crypto offerings into their existing businesses. Morgan Stanley sources said strong interest from self-directed investors shows a change in how retail participants engage with digital assets, with less dependence on professional advisers than before.
Based on the disclosed details, Morgan Stanley is pursuing a clear two-track strategy: using a 50 basis point trading fee to attract users on E-Trade, while also offering exposure through MSBT for investors looking at a trust structure. The next test will be how clients respond as the pilot expands to the full E-Trade base.