According to CryptoComLearn, Wall Street giant Morgan Stanley has submitted a second revised S-1 filing to the U.S. Securities and Exchange Commission (SEC) for its Bitcoin exchange-traded fund (ETF). The filing confirms that the Morgan Stanley Bitcoin Trust will list on the NYSE Arca exchange under the ticker "MSBT."
Application Details and Fundraising Plan
The amended document reveals that the ETF will have a basket size of 10,000 shares and an initial seed amount of 50,000 shares, targeting approximately $1 million in seed capital. This scale adjustment reflects Morgan Stanley's careful approach to market liquidity and regulatory compliance. If approved, the ETF will hold spot Bitcoin as its underlying asset, providing direct price exposure.
Custody Arrangements and Service Providers
The filing names two major custodians: BNY Mellon will serve as cash custodian and administrator, while Coinbase will act as Bitcoin custodian and execution broker. This combination blends traditional banking security with crypto-native custody expertise, seen as a critical step to satisfy SEC requirements for investor protection.
Industry Impact and Regulatory Outlook
Currently, asset managers like BlackRock and Fidelity have launched spot Bitcoin ETFs, but no major U.S. bank has done so directly. Approval would make Morgan Stanley the first major U.S. bank to issue a spot Bitcoin ETF, potentially prompting rivals like Goldman Sachs and JPMorgan to accelerate their own filings. Analysts note that the SEC's stance on digital asset ETFs has softened, but approval will still hinge on issues such as market manipulation risks, custody security, and investor safeguards.
The revised filing incorporates feedback from the SEC's previous reviews, but approval is not guaranteed. The SEC has historically delayed or rejected Bitcoin ETF applications over concerns about market maturity and custody arrangements. However, with multiple spot Bitcoin ETFs approved since 2024 and a clearer regulatory framework emerging, Morgan Stanley's application could face a final decision in the second half of 2026.
Notably, Morgan Stanley manages over a trillion dollars in assets. Its Bitcoin ETF would offer institutional investors a compliant and convenient gateway to Bitcoin exposure, potentially accelerating mainstream adoption of the cryptocurrency.