Morgan Stanley Is Trying to Become the First Big U.S. Bank With Its Own Bitcoin ETF

TLDR

• Morgan Stanley has filed an amended S-1 with the SEC for a spot Bitcoin ETF to trade as MSBT on NYSE Arca
• The fund will launch with a seed basket of 50,000 shares, raising approximately $1 million
• Morgan Stanley bought two shares on March 9 for auditing purposes
• BNY Mellon will handle cash custody and administration; Coinbase will serve as prime broker
• If approved, Morgan Stanley would be the first major U.S. bank to directly issue and sponsor its own spot Bitcoin ETF

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Morgan Stanley has submitted a second amendment to its S-1 registration statement with the U.S. Securities and Exchange Commission for a spot Bitcoin ETF. The fund will trade on NYSE Arca under the ticker symbol MSBT.

https://twitter.com/CryptosR_Us/status/2034694397883793873?s=20

The filing confirmed a basket size of 10,000 shares and an initial seed basket of 50,000 shares. Morgan Stanley expects the seed basket to raise around $1 million when the fund launches.

The bank bought two shares of the ETF on March 9. Those shares were purchased specifically for auditing purposes ahead of a potential launch.

BNY Mellon has been named as the fund’s cash custodian, administrator, and transfer agent. Coinbase will serve as the prime broker and will hold the fund’s Bitcoin.

Morgan Stanley first applied for the Bitcoin ETF in January 2026. This second amendment to the S-1 shows continued progress on that application, though SEC approval has not yet been granted.

Morgan Stanley Would Be First Major U.S. Bank to Sponsor Its Own Bitcoin ETF

If the SEC approves the fund, Morgan Stanley would become the first major U.S. bank to directly issue and sponsor a spot Bitcoin ETF. That sets it apart from other banks that have simply allowed clients to buy existing crypto ETFs.

Morgan Stanley began allowing brokerage clients to purchase spot Bitcoin ETF products in 2024. It has gradually expanded that access in the months since.

There are currently 11 spot Bitcoin ETFs active in the U.S. market, including BlackRock’s IBIT. Together, those funds have attracted more than $56 billion in investor inflows since launching in January 2024.

Morgan Stanley also filed a spot Solana ETF application in January alongside the Bitcoin fund. However, no amendments have been filed for the Solana trust yet, suggesting the Bitcoin ETF is moving through the process faster.

What Morgan Stanley’s Own Data Shows About Crypto ETF Demand

Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, spoke at the DC Blockchain Summit this week. She said that around 80% of crypto ETF demand on Morgan Stanley’s platform is coming from self-directed investors, not advisor-managed accounts.

Oldenburg described the crypto ETF market as still being in its early stages. Financial advisors are still working out how digital assets fit into traditional portfolio models, she said.

The SEC recently issued guidance classifying most cryptocurrencies as non-securities. Analyst Rachael Lucas of BTC Markets said that removes a major compliance barrier that has held back institutional crypto adoption.

Morgan Stanley has not yet received SEC approval for the MSBT fund. The second amendment to the S-1 is a procedural step forward in the review process.

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