Morgan Stanley sees Bitcoin on U.S. bank balance sheets ahead but regulatory hurdles remain.

Morgan Stanley launched the first Bitcoin exchange-traded product (ETP) from a U.S.-chartered bank, attracting over $100 million in six days from self-directed clients. Despite recommending a 2-4% Bitcoin allocation, advisor adoption is slow due to an education gap. Amy Oldenburg, head of digital asset strategy, said Bitcoin on U.S. bank balance sheets is expected but delayed by regulatory challenges including Federal Reserve and Basel rules. The bank is also pursuing a digital trust charter to offer direct crypto custody and trading.