Morgan Stanley (NYSE:MS) is expanding its crypto footprint, filing an S-1 with the U.S. Securities and Exchange Commission to launch the Morgan Stanley Bitcoin Trust, a spot ETF that would directly hold Bitcoin (CRYPTO: BTC).
The proposed fund plans to use Coinbase and Bank of New York Mellon (BNY) as Bitcoin custodians, with most assets stored in offline cold storage.
Some BTC may temporarily move into trading wallets during share creations and redemptions.
Custody insurance will be shared and may not cover all potential losses.
BNY will also serve as fund administrator, transfer agent, and cash custodian, overseeing accounting and shareholder records.
The ETF will passively track Bitcoin’s price using the CoinDesk Bitcoin Benchmark 4PM New York Settlement Rate.
Morgan Stanley’s Broader Crypto Expansion Plans
At the Strategy World 2026 event in late February, Morgan Stanley signaled broader ambitions across digital assets, including plans for native custody, exchange solutions, lending, and yield services.
The firm also intends to allow clients on its E*TRADE platform to buy and sell spot cryptocurrencies through a partnership arrangement.
Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, described the move as a “natural progression,” emphasizing that clients expect a trusted, institutional-grade solution under the Morgan Stanley brand.
The filing marks another step in Wall Street’s continued integration of crypto products into traditional financial infrastructure.
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