Bitcoins
Morgan Stanley’s long‑awaited spot Bitcoin exchange‑traded fund, the Morgan Stanley Bitcoin Trust (MSBT), has taken a major procedural step toward trading after the New York Stock Exchange confirmed an official listing notice for the product.
Bloomberg Senior ETF Analyst Eric Balchunas says the listing typically signals a launch is “imminent.”
If approved by regulators, MSBT would mark the first spot Bitcoin ETF issued directly by a major U.S. bank rather than an asset manager. Existing U.S. spot Bitcoin ETFs have been launched by firms such as BlackRock and Fidelity.
Morgan Stanley’s wealth management division oversees one of the largest networks of financial advisors in the industry, with roughly 16,000 advisors and trillions in client assets under management.
That distribution reach could make MSBT a significant channel for Bitcoin exposure in traditional portfolios.
The ETF’s fee structure has not yet been disclosed. The flagship U.S. spot Bitcoin ETF from BlackRock, iShares Bitcoin Trust (IBIT), currently charges around a 0.25% management fee, with other issuers ranging from 0.20% to 0.30% annually.
Last week, Morgan Stanley confirmed that its proposed spot bitcoin exchange-traded fund will trade under the ticker MSBT on NYSE Arca, according to an updated filing with the U.S. Securities and Exchange Commission.
The filing details the Morgan Stanley Bitcoin Trust, a passive investment vehicle designed to track the spot price of bitcoin through direct holdings. Shares will reflect the value of bitcoin held in custody, allowing investors to gain exposure through brokerage accounts without owning the cryptocurrency directly.
Speaking at the Digital Asset Summit on Tuesday, Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley said that Wall Street’s move into digital assets reflects a long-term effort to modernize financial infrastructure.
“We’ve been on a journey around the entire modernization of financial infrastructure for years,” she said, rejecting the idea that banks are acting out of fear of missing out.
The trust plans to seed the fund with 50,000 shares, expected to raise roughly $1 million in initial proceeds.
Coinbase Custody Trust Company will serve as the primary bitcoin custodian, holding most assets in cold storage and facilitating transfers tied to share creation and redemption.
BNY Mellon will handle administration, transfer agent duties, and cash custody, managing accounting, shareholder records, and cash operations for the trust.
The structure mirrors models used across the spot bitcoin ETF market, with a portion of holdings moving into trading wallets during share creation or redemption, when authorized participants exchange cash for bitcoin or redeem shares for the underlying asset.
The filing notes that custody insurance is in place but shared across multiple clients and may not cover all losses, a standard disclosure among spot bitcoin ETFs.
Micah Zimmerman Read More