Morgan Stanley Information Second Modification for Direct Spot Bitcoin ETF Product

BNY Mellon will deal with money custody and administration whereas Coinbase takes care of prime brokerage and BTC custody.

Morgan Stanley has filed a second amended S-1 with the US Securities and Trade Fee (SEC) to launch its spot Bitcoin ETF.

The replace provides operational particulars and alerts progress within the financial institution’s utility, regardless that approval continues to be unsure.

Morgan Stanley Provides Construction to Bitcoin ETF Submitting

In its submitting, the financial institution outlined plans for an preliminary seed basket of fifty,000 shares, which is anticipated to lift about $1 million. Earlier within the month, the financial institution revealed that it had undertaken one other routine step in ETF preparation, shopping for a few the fund’s shares for auditing functions.

In its earlier modification, the funding large disclosed that it had roped in BNY Mellon and Coinbase as key service suppliers, with the previous performing as its money custodian, administrator, and switch agent, whereas the latter will function prime dealer and custodian for the fund’s BTC holdings. Moreover, the submitting additionally confirmed that if authorised, the proposed BTC ETF will commerce on the NYSE Arca, with MSBT as its ticker.

The monetary establishment submitted its BTC ETF utility again in January, alongside filings for merchandise linked to Solana (SOL). On the time, it acknowledged that it had determined to embrace crypto belongings on account of improved regulatory readability underneath the Trump administration. And whereas it’s but to reveal its administration charges, the spot Bitcoin ETF may go stay within the subsequent few weeks, because of the SEC’s generic itemizing commonplace.

Had been that to occur, it will place Morgan Stanley amongst a rising checklist of issuers competing within the US spot Bitcoin ETF market, the place merchandise launched in January 2024 have attracted over $56 billion in cumulative flows, in line with information from SoSoValue.

Institutional Crypto Push Gathers Tempo

Morgan Stanley’s foray into crypto is not precisely new. It beforehand allowed sure brokerage shoppers entry to digital asset buying and selling, and up to date ETF launches from fellow Wall Road large BlackRock may present them what to anticipate.

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BlackRock has been within the crypto ETF house for some time now, but it surely just lately launched a staked Ethereum ETF that recorded a buying and selling quantity of greater than $15 million on its first day. Whereas the determine appeared modest, particularly in comparison with the agency’s extra established funds, it confirmed that there’s nonetheless curiosity in new crypto funding constructions.

In the meantime, Bitcoin itself was buying and selling across the $70,000 degree on the time of writing, up lower than 1% within the final 24 hours and displaying a dip of over 2% up to now seven days. Within the final month, the OG cryptocurrency added no less than 4% to its worth, though it’s nonetheless practically 44% beneath its all-time excessive worth recorded in October 2025, when it went previous $126,000.