TLDR
- On March 4, Morgan Stanley submitted Amendment No. 1 to Form S-1 with the SEC for its spot Bitcoin ETF
- Morgan Stanley Bitcoin Trust is planned for NYSE Arca listing upon regulatory approval
- Bitcoin will be held in offline cold storage by Coinbase Custody; BNY Mellon manages cash custody
- Pricing will follow the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
- Authorized participants can create and redeem shares using either cash or Bitcoin
One of the most established financial institutions on Wall Street, Morgan Stanley, has moved forward with its effort to introduce a spot Bitcoin exchange-traded fund. On March 4, the banking giant submitted an amended registration statement to the U.S. Securities and Exchange Commission.
The amended filing concerns the Morgan Stanley Bitcoin Trust, a product structured to mirror Bitcoin‘s market price without pursuing additional investment returns.
Morgan Stanley Investment Management, operating as a division of the parent bank, has been designated as the delegated sponsor responsible for the trust’s operational oversight and daily management.
The initial filing was submitted to the SEC in January 2026, at the same time the firm filed for a Solana-based ETF. This March update provides enhanced clarity on the structural framework of the Bitcoin investment vehicle.
The filing specifies that the trust will maintain a straightforward approach—no leverage, no derivatives, and no complex financial instruments. Its sole function is to hold Bitcoin and calculate daily share values using an established pricing standard.
Custody and Storage
Asset safekeeping responsibilities will be divided between two entities. Coinbase Custody Trust Company has been selected to secure Bitcoin holdings through offline cold storage facilities, where private keys remain isolated from internet connectivity to minimize cyber attack vulnerability.
The Bank of New York Mellon will function as both cash custodian and administrative agent. While FDIC insurance does not cover either custodian, private insurance coverage exists, though it is allocated among multiple clients.
The trust’s Bitcoin valuation will rely on the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate, a metric derived from consolidated trading data across prominent 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 have the option to contribute either cash or Bitcoin to receive share baskets. The reverse process applies for redemptions. Coinbase Inc. will serve as the prime execution agent, handling Bitcoin buy and sell orders connected to these share transactions.
Trading is anticipated to commence on NYSE Arca following SEC review completion and registration statement effectiveness.
Morgan Stanley joins an expanding roster of legacy financial institutions pursuing regulated investment vehicles that provide Bitcoin market exposure.
No specific launch timeline appears in the bank’s filing. The trust awaits formal SEC registration approval before proceeding.
Coinbase assumes two distinct functions within the fund structure—serving as custody provider via Coinbase Custody Trust Company while also acting as execution agent through Coinbase Inc.
The amendment reinforces that the trust operates as a passive investment instrument, without attempting to capitalize on market timing strategies or short-term Bitcoin price fluctuations.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
