Morgan Stanley is making significant strides in its pursuit of launching a spot bitcoin exchange-traded fund (ETF), as it deepens its collaboration with key industry players, Coinbase and BNY Mellon. The firm recently filed a second amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), bringing its proposed product closer to market readiness.
The updated filing reveals that the fund is set to trade on NYSE Arca under the ticker symbol “MSBT.” One notable aspect of the filing is the specified basket size, which will consist of 10,000 shares. Additionally, Morgan Stanley aims to raise an initial seed amount of around $1 million through a 50,000-share offering. This structured approach indicates the bank’s commitment to establishing a robust framework for its bitcoin ETF.
In terms of operational partnerships, Morgan Stanley has finalized arrangements with BNY Mellon for cash custody and administration services. Coinbase is designated as the prime broker for the ETF. Additionally, there are indications that Fidelity may also play a role in custody, although the details remain less clear. The firm has even taken the significant step of purchasing two shares of its fund earlier this month for internal testing purposes.
While the SEC’s formal approval is still pending and not guaranteed, the regular updates from Morgan Stanley suggest a tangible movement towards concluding the regulatory process. It is worth noting that the progress of Morgan Stanley’s bitcoin ETF appears swifter than that of its Solana counterpart, which has not seen similar recent amendments.
If the ETF gains approval, it would position Morgan Stanley as the first major U.S. bank to sponsor a spot bitcoin ETF, representing another noteworthy advancement in the landscape of institutional cryptocurrency adoption.
