Key Highlights
- Morgan Stanley moves closer to launching the first U.S. bank Bitcoin ETF under MSBT ticker.
- The filing outlines custody plans, risk factors, and gradual expansion into digital asset services.
- Rising crypto ETF inflows show growing investor interest as institutions deepen market involvement.
Global investment bank, Morgan Stanley, has updated a filing with the U.S. Securities and Exchange Commission (SEC) to launch what would be the first Bitcoin exchange-traded fund (ETF) offered by a major U.S. bank.
The fund, expected to trade under the ticker MSBT on the New York Stock Exchange (NYSE) Arca, is designed to give investors exposure to Bitcoin without requiring them to directly buy, hold, or manage the cryptocurrency.
The move reflects the bank’s gradual expansion into digital asset investment products within its brokerage ecosystem, a process that began in 2024 as large financial institutions began cautiously broadening access to crypto-linked instruments.
The proposed ETF is aimed not only at retail investors but also at institutional participants seeking regulated exposure to Bitcoin. According to the March 18 filing, the fund plans to use Coinbase Custody along with BNY Mellon for safekeeping of assets. Most of the Bitcoin holdings would be stored in offline “cold storage” systems to reduce the risk of hacking.
A smaller portion may be kept in active trading wallets to facilitate the creation and redemption of ETF shares. The filing also notes that insurance coverage will be in place for the assets; however, it may not fully cover all potential losses, highlighting the underlying risks associated with crypto-linked investments.
Strategic moves and regulatory steps
Morgan Stanley recently applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC) to create Morgan Stanley Digital Trust, National Association. The public comment period for the application runs until March 20.
The charter would give the bank a stronger framework for handling digital assets, which could support its plans for the Bitcoin ETF. In January, the bank also filed to launch spot Bitcoin and Solana ETFs, signaling wider interest in cryptocurrency products.
Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, said at the DC Blockchain Summit that about 80% of crypto ETF activity comes from self-directed investors. She added, “We really have to do more work to understand with financial advisors how that fits into asset allocation models going forward.” This shows the bank is still working to bring financial advisors into the process.
Earlier ETF filings and institutional push
Morgan Stanley’s move follows a wave of ETF filings from major financial institutions and asset managers over the past two years. Earlier Bitcoin ETF filings include BlackRock, Fidelity, ARK 21Shares, VanEck, and Invesco Galaxy, all of which submitted S-1 applications with the U.S. SEC as part of the spot Bitcoin ETF race.
Other global asset managers, including Invesco and VanEck, also submitted filings as competition intensified to bring regulated crypto investment products to market.
This growing list of filings has contributed to increased institutional acceptance of Bitcoin as an investable asset class within traditional financial structures.
Morgan Stanley’s planned MSBT launch could mark a notable shift in crypto ETFs, as it brings together regulatory approval efforts, established financial systems, and rising investor interest in digital assets.
Also Read: Ripple-Backed Evernorth Files S-4 With SEC for Nasdaq Debut
