TLDR
- Morgan Stanley submitted Amendment No. 1 to Form S-1 on March 4, detailing its spot Bitcoin ETF structure
- The Morgan Stanley Bitcoin Trust will trade on NYSE Arca following regulatory approval
- Bitcoin will be stored via Coinbase Custody using offline cold storage; cash custody handled by BNY Mellon
- Pricing will follow the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
- Authorized participants can create and redeem shares using either cash or Bitcoin
Morgan Stanley has moved forward with plans to launch a spot Bitcoin exchange-traded fund (ETF), submitting an amended registration statement to the U.S. Securities and Exchange Commission on March 4.
The amended filing outlines the Morgan Stanley Bitcoin Trust, a fund structured to provide direct exposure to Bitcoin price movements without pursuing additional return strategies.
Morgan Stanley Investment Management, operating as a subsidiary of the parent institution, holds the position of delegated sponsor and will oversee daily fund operations and management responsibilities.
The initial registration was submitted to the SEC in January 2026, accompanied by a separate application for a Solana-focused ETF. This March update provides comprehensive operational and structural specifications for the Bitcoin investment vehicle.
The filing specifies that the trust will maintain a straightforward approach, holding Bitcoin directly without employing leverage, derivatives, or complex financial instruments. Daily share valuations will be calculated using an established pricing benchmark.
Custody and Storage
Asset safekeeping will be divided between two institutions. Coinbase Custody Trust Company will maintain Bitcoin holdings in offline cold storage facilities, with private keys isolated from internet connectivity to minimize exposure to potential cyber attacks.
The Bank of New York Mellon will manage cash custody responsibilities and administrative functions. While FDIC insurance does not cover either custodian, private insurance coverage exists, though this protection is distributed among multiple clients.
The trust will determine Bitcoin valuations using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. This index aggregates transaction data from leading Bitcoin spot trading platforms.
How Shares Will Work
Share creation and redemption will occur through authorized participants, specialized financial entities that facilitate ETF liquidity management.
These participants can contribute either cash or Bitcoin to receive share baskets. The redemption process operates in the opposite direction. Coinbase Inc. will serve as the prime execution agent, handling Bitcoin transactions related to these creations and redemptions.
Trading is anticipated to commence on NYSE Arca following SEC review completion and registration statement effectiveness.
Morgan Stanley joins an expanding group of established financial institutions pursuing Bitcoin investment offerings through regulated fund structures.
The filing does not specify a target launch date. The trust remains in pending status awaiting formal SEC registration approval.
Coinbase maintains two distinct roles within the fund structure — custody services through Coinbase Custody Trust Company and transaction execution through Coinbase Inc.
The amendment clarifies the trust’s passive investment approach, indicating it will maintain long-term Bitcoin exposure rather than engaging in active trading or market timing strategies.
