Morgan Stanley Wealth Management just made it meaningfully easier for its richest clients to bridge the gap between holding raw crypto and owning regulated investment products. The firm announced a strategic referral partnership with Galaxy Digital that lets eligible clients lend bitcoin, ether, and solana in exchange for shares of spot crypto exchange-traded products.

The flagship product in the arrangement is the Morgan Stanley Bitcoin Trust (MSBT), which holds the distinction of being the first spot bitcoin ETP from a US bank-affiliated asset manager. For clients sitting on significant crypto holdings, this is essentially a way to convert digital assets into traditional brokerage-compatible shares without selling…