Morgan Stanley Wealth Management is giving eligible clients a new path to turn directly held crypto into spot crypto exchange traded product shares through a referral arrangement with Galaxy Digital.

The arrangement lets clients lend Bitcoin, Ether, and Solana to Galaxy and receive shares of spot crypto ETPs in return. Those products can include Morgan Stanley Bitcoin Trust, the bank affiliated Bitcoin fund known by the ticker MSBT.

The structure is designed to solve a basic problem for wealthy crypto holders. Direct crypto can sit outside traditional brokerage accounts, making it harder to use for consolidated reporting, securities based lending, and portfolio management. ETP shares bring that exposure into a format private banks already understand.

Morgan Stanley said the model is aimed at clients who want to lend crypto assets for repayment in traditional investment products. The company also said the arrangement can reduce onboarding times and costs for eligible clients.

The minimum transaction size for Morgan Stanley referred clients is $5 million, below the $25 million or higher threshold that clients often face when approaching providers directly. That keeps the product firmly in the ultra wealthy and institutional client category for now.

MSBT gives Morgan Stanley another piece of the toolkit. The fund launched in April, tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate, and charges a 0.14% sponsor fee, one of the lowest in the spot Bitcoin ETP market.

The timing matters because the SEC approved in kind creations and redemptions for spot crypto ETPs in 2025. That made it easier for investors to move crypto exposure into fund shares without first selling for cash.

Galaxy’s role is also important. The firm has positioned itself as a bridge between crypto markets and traditional finance, offering the infrastructure needed to handle lending, conversion, and institutional digital asset services.