TLDR
- On March 4, Morgan Stanley submitted Amendment No. 1 to its Form S-1 with the SEC for a spot Bitcoin ETF
- Named the Morgan Stanley Bitcoin Trust, the fund is slated for NYSE Arca listing upon regulatory approval
- Bitcoin holdings will be secured through Coinbase Custody’s offline cold storage; BNY Mellon manages cash custody
- Bitcoin pricing will follow the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
- Authorized participants can create and redeem shares using either cash or Bitcoin
A major Wall Street institution is moving forward with plans to offer Bitcoin exposure through a regulated investment vehicle. Morgan Stanley submitted an updated registration statement to the U.S. Securities and Exchange Commission on March 4, providing additional clarity on its proposed exchange-traded fund.
The proposed product, known as the Morgan Stanley Bitcoin Trust, aims to provide investors with price exposure to Bitcoin without seeking to outperform the cryptocurrency’s market value.
Morgan Stanley Investment Management, operating as a subsidiary of the banking institution, has been designated as the delegated sponsor responsible for the trust’s operational management and oversight.
The initial registration was submitted to the SEC in January 2026, appearing alongside a companion filing for a Solana-focused ETF. This March update provides enhanced operational and structural information for the Bitcoin-focused investment vehicle.
The filing specifies that the trust will maintain a straightforward approach—holding Bitcoin directly without employing leverage, derivatives, or similar financial instruments. Daily share valuations will be determined using an established pricing benchmark.
Custody and Storage
Asset protection responsibilities will be divided between two institutional providers. Coinbase Custody Trust Company has been selected to secure Bitcoin holdings using offline cold storage infrastructure, with private keys maintained in internet-disconnected environments to minimize cybersecurity vulnerabilities.
The Bank of New York Mellon will fulfill cash custodian and administrative functions. While neither custodial arrangement carries FDIC insurance coverage, private insurance policies are maintained, though these policies extend across multiple customer accounts.
The trust’s Bitcoin valuation methodology relies on the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. This benchmark aggregates transaction data from leading Bitcoin spot trading platforms.
How Shares Will Work
Share creation and redemption processes will operate through authorized participants—specialized financial entities that facilitate ETF liquidity.
These participants can contribute either cash or Bitcoin to receive share baskets. The redemption mechanism functions inversely. Coinbase Inc. has been designated as the prime execution agent handling Bitcoin transactions associated with these creation and redemption activities.
Following SEC review completion and registration statement effectiveness, shares are anticipated to begin trading on NYSE Arca.
Morgan Stanley joins an expanding roster of established financial institutions pursuing Bitcoin investment products through regulated channels.
No specific launch timeline appears in the bank’s filing. The trust remains in pending status awaiting formal SEC registration approval.
Coinbase maintains dual responsibilities within the fund structure—providing custody services through Coinbase Custody Trust Company while simultaneously serving as execution agent via Coinbase Inc.
The amendment emphasizes that the trust functions as a passive investment vehicle, avoiding market timing strategies or attempts to capitalize on Bitcoin’s short-term price fluctuations.
