Key Facts
- ✓ Morgan Stanley has filed with U.S. regulators to launch a spot bitcoin exchange-traded fund
- ✓ The proposed Morgan Stanley Bitcoin Trust would hold bitcoin directly rather than relying on futures or derivatives
- ✓ U.S. spot bitcoin ETFs now manage more than $120 billion in assets
- ✓ The filing was submitted to the Securities and Exchange Commission
- ✓ Morgan Stanley widened eligibility for crypto investments to all clients in October
Quick Summary
Morgan Stanley has filed with U.S. regulators to launch a spot bitcoin exchange-traded fund. This marks the first time a major U.S. bank has sought approval to issue an ETF tied directly to the price of bitcoin.
The filing, submitted to the Securities and Exchange Commission, proposes the Morgan Stanley Bitcoin Trust. If approved, the fund would hold bitcoin directly rather than relying on futures, derivatives, or leverage.
The move places Morgan Stanley alongside asset managers that have dominated the bitcoin ETF market since regulators approved the first U.S. spot products in early 2024. Those funds now manage more than $120 billion in assets.
The Filing Details 📄
The proposed bitcoin trust would be sponsored by Morgan Stanley Investment Management. The registration statement outlines the fund's structure and operational mechanics.
Key features of the proposed fund include:
- Shares created and redeemed in large blocks by authorized participants
- Options for cash or in-kind transactions
- Daily calculation of net asset value
- Trading on secondary markets through standard brokerage accounts
The fund's net asset value would be calculated daily using a pricing benchmark based on activity across major spot bitcoin exchanges. Retail investors would trade shares on a secondary market through standard brokerage accounts.
The filing builds on steps Morgan Stanley took last year to expand crypto access across its wealth management business. In October, the bank widened eligibility for crypto investments to include all clients and account types.
Market Context and Impact 📊
Morgan Stanley's entry signals a shift by large banks from distributing third-party crypto products toward issuing their own. Until recently, U.S. banks largely limited their role to custody and brokerage services, citing regulatory uncertainty and risk controls.
That stance has begun to change as federal agencies clarified how banks can engage with digital assets. In December, the Office of the Comptroller of the Currency said banks may act as intermediaries for crypto transactions, narrowing the divide between traditional finance and digital markets.
The SEC has also adjusted listing standards for spot crypto ETFs, smoothing the approval path for new issuers.
Spot bitcoin funds have become some of the fastest-growing products in the U.S. ETF industry, with steady inflows even during periods of price volatility. BlackRock’s bitcoin ETF emerged as one of the firm’s top revenue contributors within its first year.
By offering a proprietary bitcoin ETF, Morgan Stanley can integrate the product directly into client portfolios and retain management fees that might otherwise go to rival issuers.
Institutional Demand and Focus 🏦
The move places Morgan Stanley alongside asset managers that have dominated the bitcoin ETF market since regulators approved the first U.S. spot products in early 2024. Much of that growth has flowed into bitcoin-only products from firms such as BlackRock and Fidelity.
Morgan Stanley also filed paperwork for a similar fund tied to Solana, but bitcoin remains the core focus of institutional demand. Most assets in U.S. crypto ETFs are concentrated in bitcoin products, while funds linked to other tokens have drawn limited capital.
The economics of the bitcoin ETF market reflect this concentration. Funds now manage more than $120 billion in assets, representing a meaningful share of bitcoin’s total market value.
Conclusion
Morgan Stanley's filing represents a significant milestone in the integration of cryptocurrency into traditional banking. As the first major U.S. bank to seek approval for a spot bitcoin ETF, the firm is positioning itself at the forefront of institutional crypto adoption.
The proposed Morgan Stanley Bitcoin Trust would provide clients with direct exposure to bitcoin through a regulated investment vehicle. This development reflects the evolving regulatory landscape and growing institutional confidence in bitcoin as an asset class.
With the SEC having approved spot bitcoin ETFs in early 2024 and major asset managers already managing billions in crypto assets, Morgan Stanley's entry into the market could further accelerate mainstream adoption of digital assets.
