Key Highlights
- On March 4, Morgan Stanley submitted Amendment No. 1 to Form S-1 with the SEC for its spot Bitcoin ETF
- Named the Morgan Stanley Bitcoin Trust, the product awaits approval for NYSE Arca listing
- Bitcoin holdings will be secured through Coinbase Custody’s offline cold storage infrastructure, while BNY Mellon manages cash custody
- Price tracking will utilize the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
- Authorized participants can create and redeem shares using either cash or Bitcoin
A prominent Wall Street institution, Morgan Stanley, has moved forward with plans to introduce its inaugural Bitcoin exchange-traded fund. On March 4, the financial giant submitted an amended registration document to the U.S. Securities and Exchange Commission.
The registration covers the Morgan Stanley Bitcoin Trust, a product structured to mirror Bitcoin’s market price without pursuing additional returns beyond price tracking.
Operational oversight falls under Morgan Stanley Investment Management, a division of the parent company, which will handle the trust’s administrative functions and daily management responsibilities.
The initial SEC submission occurred in January 2026, accompanied by a concurrent application for a Solana-focused ETF. This March update provides expanded structural information about the Bitcoin-based investment vehicle.
The filing specifies that leverage, derivatives, and comparable instruments will not be employed by the trust. Its strategy centers on direct Bitcoin ownership with daily share valuations derived from an established pricing benchmark.
Asset Protection Framework
Two separate entities will manage asset security. Coinbase Custody Trust Company will maintain Bitcoin reserves in offline cold storage facilities, utilizing private key isolation from internet connectivity to minimize cybersecurity vulnerabilities.
The Bank of New York Mellon assumes responsibilities for cash custody and administrative functions. While FDIC insurance doesn’t cover either custodian, private insurance coverage exists, though distributed among multiple clients.
Valuation of the trust’s Bitcoin reserves will reference the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate, a metric derived from consolidated trading data across prominent Bitcoin spot markets.
Share Creation Mechanism
Authorized participants—financial entities facilitating ETF liquidity—will handle share creation and redemption processes.
These participants may contribute cash or Bitcoin to receive share baskets. The redemption process functions inversely. Coinbase Inc. will serve as prime execution agent for Bitcoin transactions associated with these operations.
Once the SEC concludes its evaluation and the registration becomes effective, shares are anticipated to begin trading on NYSE Arca.
Morgan Stanley joins an expanding roster of established financial institutions pursuing Bitcoin exposure through compliant investment structures.
No specific launch timeline appears in the bank’s filing. The trust remains in pending status awaiting formal SEC registration approval.
Coinbase fulfills two distinct functions within the fund structure—providing custody services through Coinbase Custody Trust Company while executing transactions through Coinbase Inc.
The amendment emphasizes the trust’s passive investment approach, avoiding market timing strategies or attempts to capitalize on short-term Bitcoin price fluctuations.
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