Morgan Stanley's Bitcoin ETF Takes Shape with Coinbase and BNY Partnership

Morgan Stanley's proposed spot Bitcoin exchange-traded fund (ETF) has taken a significant step forward with the filing of an amended registration statement with the SEC. The structure outlined in the filing sees Coinbase and BNY Mellon serving as custodians and administrators for the fund, responsible for safeguarding digital assets and facilitating transfers.

The ETF will hold bitcoin directly, rather than using derivatives or leverage, giving investors exposure to the cryptocurrency through brokerage accounts without requiring direct ownership. This structure is designed to reduce exposure to cyber threats and is a popular one in the industry.