Morgan Stanley Takes Aim at Bitcoin ETF Market with New Listing Proposal

Morgan Stanley has taken a significant step in the world of cryptocurrency by filing an amendment to its S-1 application with the Securities and Exchange Commission (SEC). The proposed spot Bitcoin ETF, which would list on NYSE Arca under the ticker MSBT, aims to track the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate.

The product is designed as a passive investment vehicle that will reflect the performance of bitcoin. Morgan Stanley plans to use seed capital of $1 million to purchase bitcoin before trading begins. Intermediaries such as Virtu Americas LLC and BNY will intervene in the fund's operation, including custody and administration functions.

This development marks a shift for Morgan Stanley from distributing BlackRock's IBIT to launching its own listed vehicle. The bank is no longer just enabling access to bitcoin through products designed by other players but now wants to control the product itself.