Morgan Stanley has filed a second amended S-1 registration document with US regulators for its proposed spot Bitcoin exchange-traded fund, to be listed on NYSE Arca under the ticker MSBT. The fund remains subject to regulatory approval before trading can commence. According to the filing, the trust expects to raise USD 1 million through the sale of 50,000 initial seed shares to its delegated sponsor ahead of listing, using the proceeds to purchase Bitcoin for the fund. Jane Street, Virtu Americas, and Macquarie Capital are listed as authorised participants, enabling them to create or redeem large blocks of shares and maintain price alignment between the ETF and the underlying asset through arbitrage.
The filing marks a significant strategic move for Morgan Stanley, which has previously distributed BlackRock’s iShares Bitcoin Trust (IBIT) rather than managing its own Bitcoin ETF product. By launching a proprietary fund, the bank would capture management fees directly rather than earning distribution commissions, according to industry commentary cited in the announcement. Furthermore, Morgan Stanley has been expanding its digital asset offering to clients more broadly. In October 2025, the bank recommended a 2% to 4% allocation to crypto for investor portfolios, and subsequently permitted its financial advisers to recommend crypto funds to clients with individual retirement accounts and 401(k)s.
The MSBT filing adds to a broader pattern of major US financial institutions moving to expand client access to Bitcoin-related products. In January 2026, Bank of America began allowing wealth management advisers to proactively recommend four Bitcoin ETFs, having previously made them available only upon request. Additionally, Vanguard, the world’s second-largest asset manager, enabled crypto ETF trading for clients in the same month, reversing its prior stance on digital asset products. BlackRock recommended up to a 2% Bitcoin allocation to its clients in December 2024.
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