Morgan Stanley Cuts 3%, Bitcoin ETF

Morgan Stanley is trying to thread a needle: cut about 2,500 jobs, launch an ultra-cheap Bitcoin ETF, and finance AI infrastructure, all while protecting client service and controls. The bank is trimming roughly 3% of its 83,000 staff after a record 2025 with $70.6 billion in revenue, targeting back- and mid-office roles as more processes go digital. That saves money, but if you thin support too fast, wealth clients feel it first in slower service and brittle execution. The stakes are margins and reputation as more trading goes algorithmic, shifting risk from fat fingers to code.

Offense comes from crypto and computing. The Morgan Stanley Bitcoin Trust aims to list on NYSE Arca at a 0.14% fee, undercutting rivals to keep flows from 16,000 advisors managing $6.2 trillion. BNY Mellon handles cash and administration, Coinbase holds the Bitcoin in cold storage. The catch: it still needs SEC approval, and steering advisors to a house fund invites questions about pushing in-house products. At the same time, a $500 million 364-day loan to Core Scientific at SOFR plus 2.5% backs high-density data centers, a short-term bridge if AI demand hits, a credit headache if it doesn’t.

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