Key Highlights
- Morgan Stanley submitted its second S-1 amendment to the SEC for a spot Bitcoin ETF designated to trade as MSBT on NYSE Arca
- The initial offering will feature a seed basket of 50,000 shares valued at approximately $1 million
- The bank acquired two shares on March 9 to facilitate auditing procedures
- BNY Mellon will manage cash custody and administrative functions; Coinbase will operate as prime broker
- Upon approval, Morgan Stanley would become the first leading U.S. bank to issue and sponsor its own spot Bitcoin ETF directly
Morgan Stanley has delivered a second amendment to its S-1 registration filing with the U.S. Securities and Exchange Commission, seeking approval for a spot Bitcoin exchange-traded fund. The proposed ETF will be listed on NYSE Arca and carry the ticker symbol MSBT.
https://twitter.com/CryptosR_Us/status/2034694397883793873?s=20
According to the updated filing, the fund will establish a basket size of 10,000 shares alongside an initial seed basket of 50,000 shares. The bank anticipates the seed basket will generate approximately $1 million in capital at the time of launch.
On March 9, Morgan Stanley acquired two shares of the ETF. The purchase was made exclusively to fulfill auditing requirements in preparation for a possible market debut.
BNY Mellon has been designated to serve as the fund’s cash custodian, administrator, and transfer agent. Coinbase will function as the prime broker while maintaining custody of the fund’s Bitcoin holdings.
The original application for the Bitcoin ETF was submitted by Morgan Stanley in January 2026. This latest S-1 amendment demonstrates ongoing advancement in the approval process, though the SEC has yet to grant final authorization.
Historic Move Would Make Morgan Stanley First Major Bank to Issue Bitcoin ETF
Should the SEC grant approval, Morgan Stanley would establish itself as the first major U.S. financial institution to directly issue and sponsor a spot Bitcoin ETF. This approach differs significantly from other banking institutions that have merely enabled clients to access existing cryptocurrency ETF products.
Morgan Stanley opened access to spot Bitcoin ETF products for its brokerage clients beginning in 2024. The firm has systematically broadened that access throughout subsequent months.
The U.S. market currently supports 11 active spot Bitcoin ETFs, including BlackRock’s IBIT. These combined funds have accumulated over $56 billion in investor capital since their January 2024 launch.
Morgan Stanley simultaneously submitted a spot Solana ETF application in January along with the Bitcoin fund. The Solana trust has not received any amendments to date, indicating the Bitcoin ETF is progressing more rapidly through regulatory review.
Morgan Stanley Platform Data Reveals Crypto ETF Investment Patterns
Amy Oldenburg, who leads digital asset strategy at Morgan Stanley, addressed attendees at the DC Blockchain Summit this week. She revealed that approximately 80% of crypto ETF activity on Morgan Stanley’s platform originates from self-directed investors rather than advisor-managed portfolios.
Oldenburg characterized the current crypto ETF landscape as nascent. Financial advisors continue to evaluate how digital assets integrate into conventional portfolio construction strategies, she noted.
The SEC recently published guidance that classifies most cryptocurrencies as non-securities. BTC Markets analyst Rachael Lucas commented that this development eliminates a significant compliance obstacle that previously hindered institutional cryptocurrency adoption.
Morgan Stanley awaits SEC approval for the MSBT fund. The second S-1 amendment represents a procedural advancement in the regulatory review timeline.
