- NYSE Arca listing notice filed; launch described as "imminent" by Bloomberg ETF analyst
- Coinbase Custody and BNY Mellon named for Bitcoin storage and cash administration
- BlackRock's IBIT and Fidelity's FBTC set the 0.25% fee benchmark MSBT must match
Morgan Stanley is edging closer to becoming the first major U.S. bank to issue a proprietary spot Bitcoin exchange-traded fund.
The New York Stock Exchange has filed an official listing notice for the Morgan Stanley Bitcoin Trust, set to trade under the ticker MSBT on NYSE Arca, a procedural step Bloomberg Intelligence senior ETF analyst Eric Balchunas has described as a signal that launch is “imminent.” The bank declined to comment.
The notice follows a second amended S-1 filed with the Securities and Exchange Commission on March 17, roughly two months after Morgan Stanley’s original January application.
The updated filing outlines the fund’s operational structure in detail: a $1 million seed investment raised through 50,000 initial shares, Coinbase Custody responsible for Bitcoin storage in offline wallets, and BNY Mellon handling cash, administration, and transfers.
Jane Street, Virtu Americas, and Macquarie Capital are named as authorized participants, the firms tasked with creating and redeeming large share blocks to keep the ETF’s price aligned with the underlying asset.
From Distributor to Issuer
The move represents a meaningful strategic pivot. Since spot Bitcoin ETFs received SEC approval in January 2024, the bank’s advisors had been directing clients toward third-party products, primarily BlackRock’s iShares Bitcoin Trust.
By early 2026, with more than 15,000 advisors authorized to proactively pitch Bitcoin ETFs rather than wait for client requests, the economics of that arrangement had grown harder to justify.
A proprietary fund allows Morgan Stanley to capture management fees directly, rather than earning distribution commissions on a competitor’s product.
The bank has not disclosed its fee; BlackRock’s IBIT and Fidelity’s FBTC both charge 0.25%, setting the competitive benchmark MSBT will need to meet or undercut.
What the Market Is Watching
The immediate effect on Bitcoin prices is expected to be limited. John Haar, Head of Private Services at Swan Bitcoin, has argued that Morgan Stanley would not bring this product to market without confidence in strong client demand.
The more consequential question is how aggressively the bank’s advisor network redirects existing allocations into MSBT rather than continuing to distribute competing ETFs. Fee pricing, custody terms, and eligibility for inclusion in managed portfolio programs are all details still pending regulatory clearance.
Bitcoin was trading near $70,579 at the time of publication, roughly flat over the prior 24 hours. SEC approval remains the final condition before trading can begin.
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