TLDR
- On March 4, Morgan Stanley submitted Amendment No. 1 to its S-1 registration form with the SEC for a spot Bitcoin ETF
- Named the Morgan Stanley Bitcoin Trust, the product is slated to trade on NYSE Arca following regulatory clearance
- Bitcoin holdings will be secured through Coinbase Custody’s offline cold storage infrastructure, while BNY Mellon manages cash assets
- Bitcoin pricing will be determined using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
- Authorized participants can create and redeem shares using either cash or Bitcoin
Wall Street veteran Morgan Stanley has advanced its efforts to introduce a spot Bitcoin exchange-traded fund. The financial institution submitted an amended registration filing to the U.S. Securities and Exchange Commission on March 4.
JUST IN: 🇺🇸 Morgan Stanley issues new SEC filing for a spot Bitcoin ETF, announcing Coinbase and BNY Mellon as the custodians 👀 pic.twitter.com/52UCwS7geu
— Bitcoin Magazine (@BitcoinMagazine) March 4, 2026
The proposed product, termed the Morgan Stanley Bitcoin Trust, aims to mirror Bitcoin’s market price without pursuing additional returns.
Morgan Stanley Investment Management, operating as a division of the parent company, serves as the delegated sponsor and will oversee the trust’s operational management.
The initial filing was submitted to the SEC in January 2026, concurrent with a separate application for a Solana-focused ETF. This March revision provides enhanced structural information regarding the Bitcoin-based investment vehicle.
The filing specifies that the trust will operate without leverage, derivatives, or comparable instruments. Its sole function will be holding Bitcoin and establishing daily share valuations through a designated pricing index.
Custody and Storage
Asset protection responsibilities fall to two separate entities. Coinbase Custody Trust Company will maintain Bitcoin reserves in offline cold storage facilities, ensuring private keys remain isolated from internet connectivity to mitigate hacking risks.
The Bank of New York Mellon assumes the role of cash custodian and administrative overseer. While FDIC insurance doesn’t cover either custodian, private insurance coverage exists, though it’s distributed among multiple clients.
Bitcoin valuation for the trust relies on the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. This index aggregates transaction data from prominent Bitcoin spot trading platforms.
How Shares Will Work
Share creation and redemption processes involve authorized participants—financial entities that facilitate ETF market liquidity.
These participants may contribute cash or Bitcoin to receive share baskets. The redemption mechanism operates inversely. Coinbase Inc. functions as the prime execution agent handling Bitcoin transactions related to these activities.
Trading is anticipated to commence on NYSE Arca following SEC review completion and registration statement effectiveness.
Morgan Stanley joins an expanding roster of established financial institutions pursuing regulated Bitcoin investment vehicles.
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 via Coinbase Custody Trust Company and trade execution through Coinbase Inc.
The amendment emphasizes the trust’s passive investment approach, explicitly avoiding market timing strategies or short-term Bitcoin price speculation.
