Morgan Stanley Pushes Spot Bitcoin ETFs Amid $20B Volumes

Key Insights:

• Spot Bitcoin ETFs have posted some of their highest trading volumes on record in recent weeks.
• The Morgan Stanley Bitcoin Trust would trade on NYSE Arca under the ticker MSBT if approved.
• The filing outlines a 10,000-share basket size and an initial 50,000-share seed raise worth about $1 million.

Banking giant Morgan Stanley has been pushing further on getting its spot Bitcoin ETF in the market. In the latest development, the bank filed a second amended S-1 with the US SEC.

The filing shows that the Morgan Stanley Bitcoin Trust plans to list on NYSE Arca, under the MSBT ticker, after approval.

Morgan Stanley Files S-1 for Bitcoin ETF With US SEC

Morgan Stanley has filed a second amended S-1 registration statement with the U.S. SEC for its proposed spot Bitcoin ETF. This signals growing efforts in the approval of the funds. Following the SEC nod, the Morgan Stanley Bitcoin Trust will list on NYSE Arca under the ticker MSBT.

Morgan Stanley Bitcoin ETF S-1 form | Source: US SEC

The filing states that the trust will use a basket size of 10,000 shares and begin with an initial seed creation of 50,000 shares. As per this arrangement, the firm will effectively raise around $1 million.

The amendment marks another step forward for Morgan Stanley’s ETF plans. However, it doesn’t guarantee any approval from the US SEC.

If approved, the product could become the first spot Bitcoin ETF directly issued by a major U.S. bank. This marks a significant expansion of Morgan Stanley’s presence in digital asset investment products.

Previous filings have also identified Coinbase Custody and BNY Mellon among the fund’s key service providers.

Spot Bitcoin ETFs In Demand

Amid the massive surge in trading volumes, the demand for spot Bitcoin ETFs seems to be picking up again. As per data from Santiment, the Bitcoin ETFs saw the third- and fourth-highest collective trading volumes on record.

Spot Bitcoin ETFs trading volumes | Source: Santiment

The analytics firm said the four largest trading-volume days for Bitcoin ETFs have all occurred within the last four weeks. March 2 recorded the highest trading volume at $31.6 billion. February 23, March 18, and March 19 followed with $23.2B, $21.4B, and $21.1B, respectively.

Furthermore, Santiment analysts shared that the surge in ETF activity comes along with the crypto market picking up pace. The market has been showing strength despite war-related uncertainty and pullbacks across equities and precious metals.

The firm said this backdrop could keep Bitcoin ETF trading volumes elevated for an extended period. At the same time, on-chain data shows a divergence between price action and large-holder behavior.

The number of Bitcoin whale wallets holding 100 BTC or more has increased by 753 wallets over the past three months. This represents a 3.9% surge, even as Bitcoin’s market value declined by 20.2**%** over the same period.

Long-term Investors Continue With Bitcoin ETFs Holdings

BlackRock said the vast majority of Bitcoin ETF investors are taking a long-term approach to the asset.

Robert Mitchnick, BlackRock’s head of digital assets, told CNBC that over 90% of Bitcoin ETF investors focus on accumulation. He said most investors are building long-term positions rather than trading short-term.

According to Mitchnick, retail investors have generally been buying market dips. On the other hand, financial advisors and institutional investors have also shown long-term conviction.

His comments suggest that most participants in the spot Bitcoin ETF market are using these products as long-duration exposure vehicles. Mitchnick added that the short-term trading activity remains limited to a smaller segment of investors.

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