Morgan Stanley Launches MSBT Spot Bitcoin ETF

Morgan Stanley expanded its digital-asset exposure in the second quarter, underscoring how major Wall Street firms are increasingly using regulated exchange-traded products to gain access to cryptocurrencies. BlackRock’s iShares Bitcoin Trust, or IBIT, is among the largest US spot Bitcoin ETFs, making changes in institutional ownership a closely watched gauge of mainstream demand for the asset class.

The bank increased its IBIT position by 23% from the previous quarter to about 16.5 million shares as of June 30, according to its latest filing. Morgan Stanley also raised its exposure to Ether funds during the quarter, with its holding in BlackRock’s iShares Ethereum Trust ETF, or ETHA, roughly tripling. It additionally added to its position in a Bitcoin trust fund launched by the bank.

Morgan Stanley, which manages about $1.9 trillion in assets, has applied to launch a spot bitcoin ETF with Coinbase Custody and Bank of New York Mellon (BNY Mellon) serving as joint custodians. The fund would be valued daily using the CoinDesk Bitcoin Benchmark Rate, reflecting major U.S. banks’ accelerating push into crypto assets.

Morgan Stanley has filed an amended S-1 with the U.S. SEC for the MSBT Bitcoin ETF, setting its management fee at 0.14%, 11 basis points below BlackRock’s comparable product. If it successfully completes the regulatory process, the fund is expected to list on a Wednesday in April and could reach customers through Morgan Stanley’s roughly 16,000 financial advisers.