Morgan Stanley and Galaxy Digital Launch Crypto-to-ETF Referral Program for Wealth Clients

Morgan Stanley Wealth Management has entered into a new referral agreement with Galaxy Digital, creating a streamlined pathway for eligible investors to convert cryptocurrency holdings into regulated crypto exchange-traded products (ETPs). The initiative is designed to help wealth management clients gain exposure to spot crypto ETFs without selling their existing digital assets, offering a more efficient and tax-conscious investment solution.

Under the arrangement, clients can lend cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) to Galaxy Digital. Once Galaxy verifies that the assets can be used for settlement, it coordinates an in-kind creation process with an authorized participant. In return, investors receive shares of approved crypto ETPs directly into their brokerage accounts, including the Morgan Stanley Bitcoin Trust (MSBT).

A key advantage of this structure is that investors do not need to liquidate their crypto holdings before obtaining ETF exposure. Because the assets are lent rather than sold, clients may avoid triggering a taxable event while also reducing the market risks associated with converting digital assets into cash.

The program highlights Morgan Stanley’s growing commitment to digital asset investment products. MSBT, launched earlier this year, has gained attention as one of the lowest-cost Bitcoin ETFs available in the United States. Morgan Stanley had previously authorized its financial advisors to recommend select Bitcoin investment products to qualified clients.

Galaxy Digital is also lowering the minimum lending requirement for Morgan Stanley referrals from $25 million to $5 million, significantly expanding access to a broader group of high-net-worth investors. Additionally, onboarding times that previously stretched beyond four weeks could be reduced by as much as 75%, making the process faster and more convenient.

The partnership arrives during a period of cryptocurrency market weakness. Bitcoin is trading near $60,749, while Ethereum and Solana have experienced notable declines over the past month. Despite the softer market environment, both companies believe the initiative will encourage greater adoption of regulated crypto investment products.

Morgan Stanley and Galaxy Digital describe the collaboration as an important step toward connecting traditional finance with the digital asset ecosystem. By simplifying access to crypto ETFs and reducing operational barriers, the program offers investors a practical way to integrate digital assets into diversified wealth management strategies while remaining within a regulated financial framework.