TLDR
- On March 4, Morgan Stanley submitted Amendment No. 1 to its spot Bitcoin ETF Form S-1 filing with the SEC
- The Morgan Stanley Bitcoin Trust is slated for NYSE Arca listing upon regulatory approval
- Bitcoin storage will be managed by Coinbase Custody using offline cold storage; cash custody falls to BNY Mellon
- 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 pushing forward with plans to launch a spot Bitcoin exchange-traded fund. Morgan Stanley submitted an updated registration document to the U.S. Securities and Exchange Commission on March 4, marking significant progress in its ETF ambitions.
The proposed product, named the Morgan Stanley Bitcoin Trust, aims to provide price exposure to Bitcoin without pursuing additional returns beyond tracking the cryptocurrency’s market value.
Morgan Stanley Investment Management, operating as a subsidiary of the banking giant, is designated as the delegated sponsor and will oversee daily trust operations and management responsibilities.
The initial registration was submitted to the SEC in January 2026, appearing alongside another application for a Solana-focused ETF. This March filing enhancement provides substantially more operational and structural information about the Bitcoin investment vehicle.
The documentation specifies that the trust will operate without leverage, derivatives, or comparable financial instruments. Its sole function involves holding Bitcoin and calculating daily share values according to an established pricing benchmark.
Custody and Storage
Asset protection responsibilities will be divided between two separate entities. Coinbase Custody Trust Company has been selected to secure Bitcoin holdings in offline cold storage facilities, utilizing air-gapped private key management to minimize cybersecurity vulnerabilities.
The Bank of New York Mellon will fulfill cash custodian and administrative duties. While FDIC insurance doesn’t cover either custodian, private insurance coverage exists, though it’s distributed among multiple clients.
Valuation of Bitcoin holdings will utilize the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. This pricing standard aggregates transaction data from prominent Bitcoin spot trading platforms.
How Shares Will Work
Share creation and redemption processes will operate through authorized participants—financial entities that facilitate ETF liquidity mechanisms.
These participants may contribute either cash or Bitcoin to receive share baskets. The redemption process functions inversely. Coinbase Inc. will serve as the prime execution agent, handling Bitcoin transactions connected to these creation and redemption activities.
Once the SEC concludes its evaluation and declares the registration statement effective, shares should begin trading on NYSE Arca.
Morgan Stanley joins an expanding group of established financial institutions pursuing regulated Bitcoin exposure products for investors.
No specific launch timeline appears in the bank’s filing. The trust awaits formal SEC registration approval before proceeding.
Coinbase maintains two distinct functions within the fund structure—custody services through Coinbase Custody Trust Company and transaction execution through Coinbase Inc.
The amendment reinforces that the trust operates as a passive investment instrument, avoiding market timing strategies or attempts to capitalize on Bitcoin’s short-term price fluctuations.
